The verdict in three sentences
For a London broking firm with 12 brokers and 3,500 commercial and group health policies, market software handles policy administration well but leaves two costly gaps: reconciling commission statements from 30 insurers and Lloyd's syndicates, and evidencing suitability and Consumer Duty outcomes. A custom CRM at GBP 30,000 to 52,000 (about EUR 35,000 to 60,000) closes both gaps and frees roughly 2 days a month of admin work. It pays for itself as soon as it recovers 1 to 2% of unclaimed commission.
Market software or custom: what a firm really pays
UK broker platforms are billed per user. They handle clients, policies, claims and premium collection, but statement imports remain partial: every carrier sends its own format (Excel, PDF, bordereaux through Lloyd's market systems), and reconciliation often ends up manual.
| Item (2026 estimate) | Market software | Custom CRM | Hybrid (market + commission module) |
|---|---|---|---|
| Setup | GBP 1,700 to 5,000 | GBP 30,000 to 52,000 | GBP 15,500 to 26,000 |
| Annual subscription (12 users) | GBP 10,100 to 18,700 | GBP 0 license | GBP 10,100 to 18,700 |
| Maintenance and hosting | Included | GBP 500 to 1,000 per month | GBP 260 to 520 per month |
| Statement imports | 8 to 15 standard carriers | 30 carriers, all formats | 30 carriers, all formats |
| Suitability evidence | Generic form | Product-specific flow, e-signature | Product-specific flow |
| Time to go live | 1 to 2 months | 5 to 7 months | 3 to 4 months |
| 5-year cumulative cost (12 users) | GBP 52,000 to 99,000 | GBP 60,000 to 112,000 | GBP 81,000 to 150,000 |
Over 5 years, custom lands at the same level as market software, but the firm owns it and grows without a per-broker surcharge. Hybrid makes sense if the firm wants to keep its current platform.
Commission reconciliation, where the money leaks
With 30 carriers and 3,500 policies, the firm receives dozens of statements each month. Discrepancies come from wrong rates, missed mid-term adjustments, late cancellations or forgotten renewal commission on group health.
| Step | Today (manual) | With the custom module |
|---|---|---|
| Statement collection | Downloads from 30 portals | File drop or EDI import |
| Format normalization | Excel copy-paste | One parser per carrier, built once |
| Policy-by-policy matching | 2 to 3 days a month | Automatic, 90% of lines |
| Discrepancy detection | Random spot checks | Alert if gap exceeds 2% of expected rate |
| Chasing carriers | Free-form email | Claim generated with policy list |
| Broker commission split | Quarterly spreadsheet | Monthly calculation, personal dashboard |
FCA rules: evidencing advice when the regulator asks
The Insurance Distribution Directive, kept in UK rules through the FCA's ICOBS, plus the Consumer Duty since 2023, require firms to capture client demands and needs, justify product suitability and show fair value. In a FCA review or a complaint, the firm must produce that evidence. The custom CRM structures a questionnaire per product family (fleet, commercial combined, group protection), generates the suitability note, gets it e-signed and archives it with a timestamp. It also tracks the 15 hours of annual CPD each broker must complete.
Mini case study
James runs a broking firm in the City of London. Annual commission income is GBP 1.55 million. His finance assistant spends 2.5 days a month on reconciliation, 30 days a year at a loaded daily cost of GBP 275: GBP 8,250. The project's initial audit finds 1.5% of uncollected commission on adjustments and renewals, GBP 23,250 a year. With a custom CRM at GBP 41,000 and GBP 780 monthly maintenance, the net annual gain is about GBP 22,000, before license savings. The project pays back in under 2 years, and James can hire 3 brokers without extra licenses.
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FAQ
Can we import statements from every carrier?
Yes. We write one parser per carrier, half a day to a day per format, and carriers on EDI are connected directly.
Does the CRM replace our policy administration system?
It can for a 12-broker firm, with migration of 3,500 policies in 3 to 4 weeks. Otherwise, the hybrid option connects to the existing platform through export or API.
How is advice evidence archived?
Each suitability note is timestamped, e-signed and kept at least 5 years after the policy ends, with an export ready for the FCA in minutes.
Where is data hosted?
In the UK, with daily backups and UK GDPR compliance, and encryption at rest for any health data.
How fast can a first module go live?
The commission reconciliation module can ship in 10 to 12 weeks, ahead of the rest of the CRM.
Let's scope your project. Tell us your number of brokers, carriers and current platform: we will price a CRM or commission module between GBP 15,500 and 52,000, with a first release within 3 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
