The Services: Becoming an Appointed Representative
The basis of ‘the deal’ is a % of brokerage shared between AR and TEn; but for reasons of confidentiality and, as this is a public place, we cannot easily go into more detail here.
There is, however, a formula that incorporates a host of subtle variations that take into account AR Practice differences, one from another.
It would be completely wrong, however, for anybody to assume that the financial result of joining TEn would be like dealing through a wholesale broker for everything. It’s not like that.
An idea such as this would appeal to nobody and there would be very little point in us proposing it!
In the interests of clarity we should add:-
- no distinction is made between new business, MTAs and renewals
- as TEn brokerage improves, then so does that of the Practice/Broker/AR
- and commissions earned from Premium Finance are shared also
the costs
The centralised technology costs are charged monthly ‘per seat’ on much the same basis and rate as any commercially available ASP service. Your local hardware and broadband connection etc you must source independently.
Also, whilst the initial two or three days of installation and training on the system is chargeable, it is definitely not billed at a commercial rate.
On the other hand, TEn perceives the following burdens (and associated costs) will be lifted from its community of brokers:-
- PI Insurance premiums paid by TEn
- FCA compliance costs paid by TEn
- FSCS compensation fund calls… for TEn
- maintenance of solvency margins are for TEn
- client/insurer accounting performed by TEn
- broker technicians employed by TEn
- central IT functions performed by TEn
the benefits
To name but a few of them:-
- standardised compliant documentation
- access to wider markets and better rates
- an end to reliance on wholesale brokers
- more time to deal with new/existing clients
- and a future in the market