The verdict in three sentences
For a 15-person brokerage in London handling 4,000 commercial and group health policies, the most underestimated task is commission reconciliation: statements from ten insurers in different formats eat several days a month and let unclaimed commissions slip away. A specialist vendor at 60 to 130 GBP (about 70 to 150 EUR) per user per month covers policy administration and compliance, while a custom build at 45,000 to 115,000 GBP (about 52,000 to 133,000 EUR) makes sense when insurer data flows, quote engines and the client portal become a commercial edge. A realistic target: one day a month per account handler saved on statements, and 1% of commissions recovered.
The obligations that shape the software
| Obligation | Rule | What the software must record | Risk if missing |
|---|---|---|---|
| Demands and needs, suitability | FCA ICOBS, Insurance Distribution Directive rules | Needs statement, disclosure documents, advice rationale | Professional liability claims |
| Consumer Duty outcomes | FCA Consumer Duty | Fair value evidence, customer outcome monitoring | FCA supervisory action |
| Training and competence | FCA, 15 hours CPD per year for IDD staff | Hours tracked per employee | Regulatory breach |
| Client money | FCA CASS 5 | Segregated accounts, daily reconciliation | Serious regulatory breach |
| Anti-money laundering | UK Money Laundering Regulations | Customer due diligence, alerts | Fines, enforcement |
| Health data protection | UK GDPR | Restricted access, audit logs | ICO fines |
Any serious vendor covers this baseline. The difference lies in the depth of insurer integrations and in what the end client sees.
Decision criteria table
| Criterion | Specialist vendor (60 to 130 GBP per user per month) | Custom (45,000 to 115,000 GBP) |
|---|---|---|
| Yearly cost for 15 users | 10,800 to 23,400 GBP | 9,000 to 16,000 GBP maintenance and hosting |
| Policies, claims, endorsements | Complete, proven | To be built, 17,000 to 35,000 GBP |
| Automatic commission reconciliation | Partial, limited formats | Import of all statements, 10,000 to 22,000 GBP |
| Built-in quote engines | Links to insurer portals | In-house comparison tool, 9,000 to 26,000 GBP |
| Client portal (certificates, claims) | Standard | Branded to the firm, 7,000 to 16,000 GBP |
| Compliance and CPD tracking | Included | To be built, 5,000 to 10,000 GBP |
| Go-live timeline | 2 to 4 months | 5 to 9 months |
| Roadmap control | Vendor roadmap | Firm priorities |
A middle path is common: keep the vendor for policy administration and commission a reconciliation module and client portal connected to its API, for 22,000 to 40,000 GBP.
Where commissions leak
| Cause of variance | Observed frequency | Typical yearly amount | What automation fixes |
|---|---|---|---|
| Commission unpaid after renewal | Frequent | 2,600 to 5,200 GBP | Policy-by-policy check |
| Rate differs from the agency agreement | Regular | 1,700 to 4,300 GBP | Comparison to contractual rate |
| Endorsement not commissioned | Occasional | 900 to 2,600 GBP | Matching per endorsement |
| Unjustified clawback | Rare | 900 to 2,200 GBP | Alert on every clawback |
| Late statement never chased | Frequent | Cash delayed 30 to 60 days | Automatic chasing |
These are 2026 estimates for a brokerage earning 900,000 to 1,300,000 GBP in annual commissions.
Mini case study
Sophie, founder of a 15-person brokerage in London, manages 4,000 policies and earns 1,050,000 GBP in commissions a year. Her vendor costs 95 GBP per user per month, 17,100 GBP a year. Three account handlers each spend two days a month on insurer statements.
- Custom reconciliation module and client portal: 33,000 GBP, plus 5,200 GBP a year in maintenance.
- Time saved: one day a month per handler, 36 days a year, about 10,800 GBP at 300 GBP per loaded day.
- Commissions recovered: 1% of commissions, 10,500 GBP a year.
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With 21,300 GBP of yearly gains for 5,200 GBP of maintenance, the module pays back in just over two years without changing vendor.
FAQ
How much does broker management software cost in 2026?
A vendor costs 60 to 130 GBP per user per month, 10,800 to 23,400 GBP a year for 15 people. A fully custom system ranges from 45,000 to 115,000 GBP.
Can commission reconciliation be automated?
Yes, by importing insurer statements (spreadsheets, PDFs or data feeds) and comparing them with contractual rates. Budget 10,000 to 22,000 GBP to cover ten insurers.
How do we stay compliant with a custom tool?
The software must generate and archive the demands and needs statement, disclosures and advice rationale, and evidence Consumer Duty outcomes. Tracking the 15 annual CPD hours per staff member must be built in.
Do we need a client portal?
It cuts requests for certificates and claim updates, often 20 to 30% of a brokerage's calls. A branded portal costs 7,000 to 16,000 GBP.
How long does a hybrid project take?
A reconciliation module and portal connected to the vendor ship in 3 to 4 months. A fully custom system needs 5 to 9 months with careful data migration.
Let's scope your project. Send us your policy count, partner insurers and current vendor, and we will price a scope between 22,000 and 115,000 GBP with a 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.
