The Services: The Broker Network Deal
The basis of ‘the deal’ is always a % of brokerage/margin shared between the AR and TEn. For reasons of confidentiality and, as this is a public place afterall, we cannot easily go into much more detail than that.
NOTE: We define brokerage as Commission + Fees - Discount = Margin
You may be interested to know, that we also have a formula that incorporates a host of subtle variations, that take into account AR differences, one from another. This calculation looks at size, workload and work transfer, efficiency, proficiency and several other factors.
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 is not like that at all!
A sub-broker type of proposition would appeal to very few and so there would be little point in us proposing anything like that.
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 as well
Alas, that is about as much as we can say here, but you will find that we are surprisingly transparent about financial matters; once we get to know you.
the costs
The centralised technology costs are charged monthly ‘per seat’ on much the same basis and rate as any commercially available Cloud service.
You will be charged far less for the Acturis system (per seat) than an equivalent sized Broker that deals with them directly.
Your own hardware and broadband connections you will source yourself, although we are always pleased to point our ARs in the right direction.
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/FOS regulaory levies paid by TEn
- FSCS compensation fund calls paid by TEn
- the maintenance of solvency margins are down to TEn
- client/insurer accounting processed by TEn
- broker technicians and other staff employed by TEn
- central IT functions and support performed by TEn
the benefits
To name but a few of them:-
- standardised, up-to-date and compliant documentation
- access to wider markets and better rates from ‘A’ rated insurers
- an end to extensive reliance on MGAs wholesale brokers
- more time to deal professionally with both new/existing clients
- and, most important, a secure future in the market
