The verdict in three sentences
For a brokerage with 9 staff managing 4,500 policies, the challenge is no longer just storing policies: you must evidence IDD advice, manage renewals and reconcile commissions from dozens of insurers. Vendor software at EUR 90 to 180 per user per month is often the best choice at this size, while a custom build at EUR 50,000 to 95,000 is justified if the firm is growing fast, runs delegated authority schemes or wants a branded client portal. Over 6 years, both options end up in the same range: your growth path is what decides.
What the software must cover in 2026
Under the Insurance Distribution Directive (IDD) and the Central Bank of Ireland's Consumer Protection Code, every sale must be preceded by a demands-and-needs assessment, a reasoned recommendation and the delivery of the product information document (IPID). The Central Bank checks the traceability of these steps, and insurers increasingly request evidence during agency audits.
| Function | Without dedicated software | With brokerage software | Estimated gain |
|---|---|---|---|
| IDD demands-and-needs | scattered Word and PDF files | time-stamped questionnaire per client | proof in 1 click |
| Recommendation and IPID | 25 min per policy | 8 min per policy | 17 min per sale |
| Renewals and due dates | spreadsheet, 10 to 15% missed | alerts at D-90, D-60, D-30 | retention +3 to 5 points |
| Commission reconciliation | 3 days a month | 0.5 day a month | 2.5 days a month |
| Unpaid commissions detected | rarely | 0.5 to 1% of commissions | cash recovered |
| Client complaints (regulatory deadlines) | tracked by email | register and reminders | Central Bank compliance |
Vendor or custom: the 6-year cost
Assumptions: 9 users, vendor software at EUR 135 per user per month (mid-range), EUR 5,000 setup and a 3% annual increase; custom build at EUR 70,000 and EUR 7,000 of maintenance and hosting a year from year two.
| Year | Vendor, cumulative (9 users) | Vendor, cumulative (14 users from year 3) | Custom, cumulative |
|---|---|---|---|
| 1 | EUR 19,580 | EUR 19,580 | EUR 70,000 |
| 2 | EUR 34,600 | EUR 34,600 | EUR 77,000 |
| 3 | EUR 50,070 | EUR 58,660 | EUR 84,000 |
| 4 | EUR 66,000 | EUR 83,440 | EUR 91,000 |
| 5 | EUR 82,410 | EUR 108,960 | EUR 98,000 |
| 6 | EUR 99,310 | EUR 135,250 | EUR 105,000 |
With a stable headcount, the vendor stays cheaper over 6 years. If the firm grows to 14 staff, the custom build becomes cheaper from year five, and it remains the firm's property, which counts towards valuation when the book is sold.
When custom makes sense
- Delegated authority for claims or premiums on behalf of an insurer, with specific data flows.
- Niche lines (motor fleets, agricultural risks, healthcare professionals) with very specific demands-and-needs questionnaires.
- Client portal with e-signature, downloadable certificates and online claims notification.
- Connection to rating engines and insurer portals, with automatic import of commission statements.
- Planned acquisitions: books of business to integrate without multiplying licences.
Mini case study
Julien, managing broker of a 9-person firm in Dublin, looks after 4,500 policies and earns EUR 1.2 million in commissions. With the right tool, he saves 17 minutes on each of his 700 new policies a year, about 200 hours, and 2.5 days a month on commissions, about 210 hours. At EUR 45 per loaded hour, these 410 hours are worth EUR 18,450 a year. Automatic reconciliation reveals 0.8% of unpaid commissions, i.e. EUR 9,600 recovered. With roughly EUR 28,000 of annual gain, vendor software at EUR 14,580 a year pays for itself in year one, and a custom build at EUR 70,000 in just over 3 years, sooner if the firm hires.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
How much does insurance brokerage software cost in 2026?
Vendor software costs roughly EUR 90 to 180 per user per month, plus EUR 2,000 to 8,000 of setup. A custom build ranges from EUR 50,000 to 95,000 depending on insurer connectors and the client portal.
How do I evidence IDD advice during an inspection?
The software time-stamps the demands-and-needs questionnaire, the recommendation and the IPID delivery, then files them in the client record. You can produce the evidence for a policy in under a minute instead of searching through emails.
Can the software handle commissions from 30 insurers?
Yes, it imports statements, matches each line to policies and flags discrepancies. Reconciliation drops from 3 days to half a day a month and typically uncovers 0.5 to 1% of missed commissions.
How long does a custom build take?
Allow about 5 months: migration of 4,500 policies and history, IDD module, renewals, commissions, then the client portal. Vendor software can be live in 1 to 2 months.
Is my data GDPR-compliant?
A custom build is hosted in Ireland or elsewhere in the EU, with per-user access rights and a configured retention period, typically 6 years after the end of the policy for advice records.
Let's scope your project. Send us your number of staff, policies and partner insurers: we will compare vendor and custom options for you, with a priced scope between EUR 50,000 and 95,000 delivered in 5 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.
