The verdict in three sentences
For a brokerage of 14 advisers handling 4,000 loan insurance files a year, a generic CRM billed at 60 to 150 EUR per user per month manages the client relationship but does not prove the duty to advise required by the Insurance Distribution Directive (IDD). Custom business software puts the comparison of 12 insurers, the cover equivalence check and the audit trail in one file. The right calculation runs over 5 years: subscriptions that stack up every month against a one-off investment of 3,810 to 22,870+ EUR depending on complexity, delivered in 3 to 5 months.
What regulation actually requires from a loan insurance broker
Across the EU, the IDD requires brokers to record the client's demands and needs, give reasoned advice, hand over standardised information documents and complete 15 hours of continuing training per adviser per year. France goes further with the Lemoine law: borrowers can switch loan insurance at any time, and the health questionnaire is waived for loans where the insured share stays below 200,000 EUR per person and ends before the borrower turns 60. In the UK, the FCA Consumer Duty creates a similar burden of proof on outcomes. In every case, the regulator audits documents: if it is not traced, it did not happen.
| Requirement | What the software must produce | Risk if the tool does not |
|---|---|---|
| Demands and needs | Structured, time-stamped questionnaire attached to the file | Advice impossible to prove in a dispute |
| Reasoned advice | Comparison report across 12 insurers with the reason for the choice | Professional liability claim, regulator sanction |
| Cover equivalence (France) | Automatic check of the criteria chosen by the bank from the CCSF list (up to 11 for a mortgage) | Switch refused, client lost |
| Bank response deadline | Alert on the 10th working day after the request | File stuck without follow-up |
| Information documents | Automatic generation of the advice sheet and the IPID | Incomplete file at audit |
| IDD training | Log of 15 annual hours per adviser with alerts | Non-compliance finding |
| Evidence retention | Audit log and archive of at least 5 years | No defence possible |
One point often missed: health questionnaires still required above the waiver thresholds are health data. In France they call for HDS-certified hosting, encryption and restricted access; elsewhere in Europe, GDPR special-category rules apply. This shapes the architecture, and therefore the quote.
Market CRM or custom software: the 5-year comparison
Generic CRMs are excellent for sales follow-up and weaker on compliance. Broker SaaS covers IDD out of the box but imposes its own insurer list and workflow. Custom software starts from your 12 insurers, your pricing rules and the way your advisers actually work.
| Item | Generic market CRM | Broker SaaS | Kolonell custom build |
|---|---|---|---|
| Entry cost | Configuration of 3,000 to 10,000 EUR (2026 ballpark) | Setup of 2,000 to 8,000 EUR | 3,810 to 22,870+ EUR (2.5 to 15M+ FCFA) depending on complexity |
| Recurring for 14 users | 60 to 150 EUR per user per month, i.e. 10,080 to 25,200 EUR a year | 80 to 120 EUR per user per month, i.e. 13,440 to 20,160 EUR a year | Maintenance at 53, 114 or 183 EUR a month (35,000, 75,000 or 120,000 FCFA) |
| 12-insurer comparison | Connectors to build on top | Partial, vendor-defined list | Yes, your insurers and your rules |
| IDD traceability | Custom fields to build | Yes, standard | Yes, full audit log |
| Cover equivalence check | No | Sometimes | Yes, automatic |
| Data ownership | Vendor | Vendor | Brokerage |
| Go-live | 1 to 2 months | 2 to 6 weeks | 3 to 5 months |
Over 5 years, a CRM at 100 EUR per user for 14 advisers costs 1,400 EUR a month, or 84,000 EUR, before configuration. A custom project at the top of the complex range (22,870 EUR) with the highest maintenance plan (183 EUR a month for 60 months, i.e. 10,980 EUR) lands around 33,850 EUR. The gap easily covers certified hosting, which is quoted separately.
Which scope for which budget
| Level | Typical scope for a loan insurance broker | Kolonell budget | Indicative timeline |
|---|---|---|---|
| Simple | File management, IDD questionnaire, regulatory document generation | 3,810 to 6,100 EUR (2.5 to 4M FCFA) | About 3 months |
| Medium | Simple, plus 12-insurer comparison, equivalence check, client portal for documents | 6,100 to 10,670 EUR (4 to 7M FCFA) | About 4 months |
| Complex | Medium, plus insurer APIs, e-signature, commission tracking, bank partner extranet | 10,670 to 22,870+ EUR (7 to 15M+ FCFA) | About 5 months |
Connectors to existing tools (accounting, telephony, e-signature), certified hosting and migration of historical files are quoted separately. The most efficient path is usually to start at the medium level and add insurer APIs once volumes are confirmed.
Mini case study
Julien founded a loan insurance brokerage in Toulouse with 14 advisers and 4,000 files a year. Each file currently takes about 2 hours of data entry, comparison across insurer extranets and advice drafting. The new tool brings that down to 1 h 20, saving 40 minutes per file.
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- Time saved: 4,000 x 40 minutes = 2,667 hours a year, the equivalent of 1.7 full-time staff.
- Value at a 32 EUR loaded hourly cost: 2,667 x 32 = 85,344 EUR a year.
- Investment assumed: complex level at the top of the range, 22,870 EUR, plus 183 EUR monthly maintenance (2,196 EUR a year).
Payback comes after just over 3 months of use. Julien chooses to redirect those hours to prospecting referral partners rather than cutting staff: 10 % more files would cover several years of maintenance.
FAQ
Can a generic CRM be enough to comply with the IDD?
In theory yes, if you build the fields, document templates and audit log yourself. Budget 3,000 to 10,000 EUR of configuration as a 2026 ballpark, on top of 60 to 150 EUR per user per month. Cover equivalence checks are rarely automated.
Does a loan insurance broker need certified health data hosting?
As soon as you store health questionnaires, yes: GDPR treats them as special-category data, and France requires HDS certification. Files under the Lemoine thresholds (200,000 EUR per person, term before age 60) no longer contain them, but others do. Hosting is quoted separately.
How long until the software is live?
Between 3 and 5 months depending on the level, acceptance testing included. A simple level can ship in 3 months and grow in stages. Training 14 advisers usually takes 2 half-days.
Can we connect the pricing engines of our 12 insurers?
Yes, where the insurer offers an API or a rating feed, which most major delegated-cover players do. For the others, assisted rate entry remains possible. Each connector is quoted separately.
Who owns the code and the data?
The brokerage. Data can be exported at any time and the code ships with documentation, which avoids lock-in with a vendor raising prices by 5 to 10 % a year.
Let's scope your project. Tell us about your partner insurers, your advice workflow and your file volumes, and we will define the scope and a 3 to 5 month plan. 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.
