The verdict in three sentences
A London broker running 3,000 to 20,000 policies has two options in 2026: an off-the-shelf broking system at 50 to 150 GBP per user per month, or custom software at 50,000 to 130,000 GBP delivered in 16 to 24 weeks. The decision hinges on FCA evidence of suitability and Consumer Duty outcomes, plus connections to insurer portals and placing platforms, two areas where standard tools quickly hit limits for specialist firms. Beyond 12 users or in a niche (fleet, construction, group health), custom software usually wins over five years.
FCA, IDD and Consumer Duty: what the software must prove
UK brokers remain bound by the IDD principles carried into the FCA Handbook, plus the Consumer Duty since 2023. For each policy, the firm must be able to show the demands and needs statement, the rationale for the recommendation, the documents provided and the communication history. Software that does not log these steps exposes the firm to supervisory action and professional indemnity claims.
| Function | Off-the-shelf system | Custom |
|---|---|---|
| Suitability and Consumer Duty evidence | Generic templates, limited tailoring | Per-line questionnaires, e-signature, timestamps |
| Insurer portals and rating engines | Standard connectors, mostly large carriers | Targeted connectors to your 5 to 15 key insurers |
| Claims handling | Basic tracking | Per-line workflow, chasers, documents, SLAs |
| Commission and bordereaux | Manual or semi-automatic import | Automatic bordereaux reconciliation |
| Client portal | Paid add-on | Included, in the firm's branding |
| 2026 cost | 50-150 GBP per user per month | 50,000-130,000 GBP + 15% to 20% per year |
Budget and timeline for custom broking software
Budget depends mainly on the number of insurers to connect and the lines of business handled. A commercial lines broker with 6 insurers sits at the lower end, a multi-line broker with delegated claims authority moves to the top.
| Module | Indicative 2026 cost (GBP) |
|---|---|
| Clients, policies, endorsements, renewals | 11,000 - 24,000 |
| Suitability evidence and e-signature | 7,000 - 18,000 |
| Insurer connectors and data feeds | 10,000 - 35,000 |
| Claims and handling workflow | 8,000 - 21,000 |
| Commission, bordereaux, reporting | 6,000 - 17,000 |
| Client portal and introducer extranet | 8,000 - 15,000 |
| Phase | Duration |
| Scoping, mapping insurer data flows | 2-3 weeks |
| Core clients, policies, suitability | 5-7 weeks |
| Insurer connectors and claims | 5-8 weeks |
| Commission, client portal, testing | 3-4 weeks |
| Book migration and training | 1-2 weeks |
Migration deserves care: 15,000 policies with endorsements, documents and history often represent 200 to 400 GB of files. UK or EU hosting, encryption and access logging are essential under UK GDPR.
Mini case study
Claire runs a 14-person broking firm in the City with 9,000 policies on the book. Her current system costs 120 GBP per user per month, i.e. 20,160 GBP per year, plus 5,000 GBP in add-ons (client portal, e-signature). A custom tool is quoted at 75,000 GBP plus 11,000 GBP annual maintenance. Over five years: 125,800 GBP for the packaged system versus 130,000 GBP for custom, close to break-even. The decisive factor is automatic bordereaux reconciliation, which frees 6 hours per week of an account handler, about 9,400 GBP per year at a 30 GBP loaded hourly cost, tipping the five-year balance clearly toward custom.
FAQ
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Can custom software connect to every insurer portal?
Not always directly: some insurers offer APIs or Acord-standard feeds, others only exports. Budget 1,500 to 5,000 GBP per connector depending on documentation quality.
How does the software evidence suitability during an FCA review?
Each recommendation is timestamped with the demands and needs statement, signed advice record and the version of documents issued. Exporting a full file takes under a minute instead of hours of searching shared drives.
What happens to our book if we leave the current vendor?
Check the exit clause: most vendors provide CSV and document exports, sometimes charged 2,000 to 7,000 GBP. We take over these exports and check policy consistency.
Where is the data hosted?
In the UK or EU, with an ISO 27001-certified provider, encryption and daily backups. Hosting usually costs 130 to 450 GBP per month.
When does custom software pay off?
From about 10 to 12 users, or as soon as a specialist line is poorly covered by standard tools. Below 6 users, a packaged system is often the better choice.
Let's scope your project. Share your policy count, lines of business and partner insurers: we will price a scope between 50,000 and 130,000 GBP and compare it with your current five-year cost. 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.
