The verdict in three sentences
For a brokerage with 6 staff and 1,900 policies, the right architecture combines off-the-shelf broker software at EUR 80 to 200 per user per month (about GBP 70 to 170) with EUR 20,000 to 45,000 of custom development (about GBP 17,000 to 38,000) for what the package does poorly. That add-on covers three things: the client portal, renewal reminders and the documented demands-and-needs analysis required by insurance distribution rules. The return comes first from retention: each point of lapse rate avoided is worth about EUR 4,000 of commission a year.
What the regulator expects you to prove
Under the Insurance Distribution Directive in the EU, and its UK equivalent enforced by the FCA alongside the Consumer Duty, a broker must record the client's demands and needs, justify its recommendation and keep the evidence. During a supervisory review, a file without a dated questionnaire or signed suitability note is a breach. In many small brokerages, in London as in Nice, these documents exist but sit in scattered PDFs.
| Requirement | What to keep | Typical situation | With the right tool |
|---|---|---|---|
| Demands and needs analysis | Dated, signed questionnaire | Word form filled by hand, 25 min | Guided form, 10 min, time-stamped |
| Justified recommendation | Suitability note per policy | Missing on 30% of older files | Auto-generated, 100% of files |
| Product information document (IPID) | Proof of delivery | Untracked email | Delivered via portal with receipt |
| Continuing professional development | 15 h per year per adviser | Spreadsheet | Built-in tracking with alerts |
| Remuneration disclosure | Nature of the commission | Inconsistent wording | Standardized clause |
| Anti-money laundering | Checks on protection and savings | Occasional review | Risk score at onboarding |
What the software stack costs in 2026
Broker management systems handle the portfolio, premiums and commissions well. They handle client experience and the specific journeys of business clients (tradespeople, restaurants, professional practices) less well. Here is the 2026 order of magnitude for 6 users.
| Item | Software only | Software + custom development |
|---|---|---|
| Licences (6 users) | EUR 5,760 to 14,400 a year | EUR 5,760 to 14,400 a year |
| Initial development | EUR 0 | EUR 20,000 to 45,000 |
| Custom maintenance | EUR 0 | EUR 3,000 to 6,500 a year |
| Client portal (certificates, claims) | Basic or missing | Full, in your brand |
| Multichannel renewal reminders | Simple email | Email, SMS, adviser alert 60 days ahead |
| Demands and needs analysis | Generic form | Questionnaire per trade, e-signature |
| 5-year total cost | EUR 28,800 to 72,000 | EUR 63,800 to 149,500 |
Where custom pays off
The gain is not measured in software cost but in commission retained and time recovered. With an average premium of EUR 1,800 and an average commission rate of 12%, your book generates about EUR 410,000 of commission a year.
| Lever | Before | After | Estimated annual effect |
|---|---|---|---|
| Lapse rate | 9% | 6% | +EUR 12,300 of commission retained |
| Needs analysis time | 25 min | 10 min | 150 h saved (600 cases) |
| Certificate requests by phone | 1,200 a year | 300 a year | 75 h saved |
| Unreconciled commissions | 2% | 0.5% | +EUR 6,150 recovered |
| Non-compliant files | 30% | under 2% | Lower regulatory sanction risk |
Mini case study
Sophie, partner in a brokerage serving business clients, pays EUR 9,600 a year in licences today. She invests EUR 32,000 in a client portal, a reminder module and a trade-specific needs analysis, plus EUR 4,500 of annual maintenance.
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Calculation: EUR 12,300 of commission retained + EUR 6,150 recovered + 225 hours freed valued at EUR 35 fully loaded, i.e. EUR 7,875. Total gain: EUR 26,325 a year, minus EUR 4,500 maintenance, i.e. EUR 21,825 net. The project pays back in 18 months, and the firm faces any regulatory review with 100% of files documented.
FAQ
How much does insurance broker software cost in 2026?
Market solutions range from EUR 80 to 200 per user per month depending on modules (quote engines, document management, accounting). For 6 users, budget EUR 5,760 to 14,400 a year.
Should everything be custom-built?
Rarely. Portfolio and premium management is better covered by proven software. Custom work, at EUR 20,000 to 45,000, targets client journeys and compliance, connected through an API.
How do we prove our advice during a review?
Each file must contain the dated needs analysis, the justified recommendation and proof that pre-contract documents were delivered. A well-designed tool archives them automatically for at least 5 years after the relationship ends.
Where should client data be hosted?
Health data linked to protection policies needs a certified, GDPR-compliant host in the UK or EU. Expect an extra EUR 150 to 400 a month for a firm of this size.
How long does implementation take?
Plan 8 to 14 weeks for the portal, reminders and needs analysis, with migration of the 1,900 policies in 1 to 2 weeks.
Let's scope your project. Tell us your current broker software, lines of business and compliance priorities, and we will price a custom add-on between EUR 20,000 and 45,000 delivered in 8 to 14 weeks. 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.
