The verdict in three sentences
For a brokerage of 15 staff and 4,000 policies, a broker SaaS remains the most economical option in most cases: 68,000 to 147,000 EUR (about 74,000 to 160,000 USD) over 5 years. Custom software, at 40,000 to 90,000 EUR, is justified for a wholesale broker, an affinity program or delegated authority that standard tools cover poorly. Whatever you choose, the non-negotiable requirement is traceability of advice, which the regulator (the ACPR under the IDD in France, RIBO and FSRA in Ontario) can audit at any time.
What advice rules require from your software
Under the EU Insurance Distribution Directive, and under comparable Canadian conduct rules, each sale must be preceded by a needs assessment, a reasoned recommendation and delivery of product information. In an audit or dispute, the firm must produce these documents, dated, for any of its 4,000 policies.
| Obligation | Common practice | What the software must do | Risk if missing |
|---|---|---|---|
| Needs assessment | Word questionnaire filled by hand | Guided, time-stamped, signed form | Failure to advise, E&O claim |
| Personal recommendation | Free-form e-mail | Template per product with rationale | Regulatory sanction, client litigation |
| Product information document | Untracked attachment | Proven delivery with read receipt | Contested contract |
| Continuing education (15 h per year) | HR spreadsheet | Tracking per staff member with certificates | Audit finding |
| Compensation and conflicts of interest | Verbal disclosure | Automatic mention in the file | Non-compliance |
| Complaints | Mailbox | Register with response deadlines | Formal notice |
2026 order of magnitude: preparing for an audit without tooling takes 8 to 15 working days. With up-to-date software, 1 to 2 days are enough.
Broker SaaS or custom: 5-year cost
| Item | Entry-level SaaS | Full SaaS | Custom by Kolonell |
|---|---|---|---|
| Subscription or development | 70 EUR per user per month | 150 EUR per user per month | 40,000 to 90,000 EUR |
| Setup and migration of 4,000 policies | 5,000 EUR | 12,000 EUR | included |
| Annual recurring cost (15 users) | 12,600 EUR | 27,000 EUR | 8,000 to 15,000 EUR maintenance |
| Insurer portals and data feeds | Connectors listed by the vendor | Extended connectors | Built for your carriers |
| Deployment time | 1 to 2 months | 2 to 3 months | 4 to 6 months |
| 5-year total cost | 68,000 EUR | 147,000 EUR | 80,000 to 165,000 EUR |
SaaS cost grows with headcount: at 30 staff on the full plan, it reaches 282,000 EUR over 5 years. Custom software keeps an almost fixed cost.
The criteria that should decide
| Criterion | Leans toward SaaS | Leans toward custom |
|---|---|---|
| Business | Local P&C and health brokerage | Wholesale, affinity, delegated authority |
| Headcount | Fewer than 20 users | More than 25 users |
| Partner carriers | Major insurers already connected | Niche or foreign carriers |
| Rating | Carrier rate tables | In-house rating engine |
| Customer journey | Standard client portal | Branded online quote and bind |
| Starting budget | Under 15,000 EUR available | 40,000 EUR or more possible |
A hybrid option often works: SaaS for policy management, plus a custom online quote-and-bind journey and one connector to an uncovered carrier portal, for 15,000 to 30,000 EUR.
Mini case study
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Sophie, managing director of a 15-person brokerage, writes 1,200 new policies a year. The software cuts 15 minutes from building each advice file: 1,200 × 0.25 h = 300 h, valued at 45 EUR per loaded hour, i.e. 13,500 EUR per year. Commission reconciliation drops from 2 days to half a day per month: 18 days × 8 h × 45 EUR = 6,480 EUR per year. Total gain: about 20,000 EUR per year. She picks a SaaS at 110 EUR per user, i.e. 19,800 EUR per year, plus 18,000 EUR for a custom online quote journey. The gain covers the subscription from year one, and the online journey brings in additional policies.
FAQ
Does software guarantee compliance?
No, it guarantees traceability. The quality of advice remains the broker's, but 100 % of files can be produced within minutes during an audit.
Can we connect to every insurer portal?
Not always. Large carriers offer standard data feeds; for others, a custom connector costs 4,000 to 10,000 EUR depending on the available format.
Where is policyholder data hosted?
In the required jurisdiction (EU under GDPR, Canada under PIPEDA), with certified hosting for health data when you process it, for 200 to 600 EUR per month.
How long does it take to migrate 4,000 policies?
Count 3 to 5 weeks, including one week of data checks. Incomplete policies are listed for follow-up.
Can custom software be capitalized?
Yes, software built for the firm is usually capitalized and amortized over 3 to 5 years, to be confirmed with your accountant.
Let's scope your project. Share your headcount, policy volume and partner carriers: we will compare SaaS, custom and hybrid options with an indicative budget and a 4 to 6 month timeline. 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.
