Britons need not be reminded that car insurance in the UK is the prescribed means for protecting drivers, passengers, other people, and properties in case of an accident. And it’s for the best that this is mandatory, given the likelihood of accidents due to the large volume of automobiles. As of June 2024, it has been found that there are 33.93 million cars in the UK, and they all require proper insurance.
The sheer number of cars and motorists in the country makes a good case for choosing a career as a car insurance broker. Becoming an auto insurance broker in a market like the UK’s can be a long, profitable, and perhaps even fulfilling. In addition, the market for car insurance remains large and is steadily growing, with a 6% increase in auto sales in the first half of 2024. It has been projected that more people in the UK will be purchasing brand-new cars, including electric vehicles (EVs), plug-in hybrids, and hybrid vehicles in the next few years.
So, given the opportunity to sell a lot of insurance to motorists, how does one go about becoming an auto insurance broker? In this article from Insurance Business, we’ll provide insight on how to become an auto insurance broker in the UK. We’ll shed light on how to become a car insurance broker with no experience, if the career of a car insurance broker is worth the effort, and many more important questions.
Like many other insurance brokers, the role of a car insurance broker is similar – they act as an intermediary between their clients and insurance providers. But in the case of car or auto insurance brokers, their role is more specialised, offering coverage to motorists.
Car insurance brokers also perform other tasks for their clients, like researching the best car insurance on the market, making comparisons, then recommending the insurers and insurance products that fit the needs and circumstances of their clients.
Here’s a short list of the car insurance broker’s responsibilities to their clients:
Car insurance brokers also have a duty to remain updated on the latest car insurance trends. For instance, they must be well-versed in insuring new types of vehicles like EVs, or know what the cheapest cars to insure in the UK are. These new types of cars may have different additional taxes, fees, or perhaps tax exclusions down the line.
There has been recent discussion, for example, to possibly remove the 12% Insurance Premium Tax (IPT) for electric vehicles, which may encourage some motorists to “go green”.
The good news about how to become a car insurance broker in the UK is that there are no formal educational requirements. Pursuing a career in car insurance sales is generally very similar to how you become a general insurance broker in the UK. Although there are no formal educational requirements, some employers may require applicants to have them. Insurance companies, like Lloyd’s, for example, require a minimum of 4 or 5 GCSEs at grades 9 to 4 with A levels or equivalent qualifications. Some insurance agencies or brokerage firms may require these if you apply for senior positions or higher apprenticeships.
It should be noted, however, that obtaining a university degree has value when working your way to become an auto insurance broker. If you decide to pursue a degree, choose one that can provide you with valuable knowledge for your career. Viable degrees for this purpose include:
These or any other related courses can give you an advantage should you choose to apply for a car insurance broker role in the future.
An essential part of how to become an auto insurance broker in the UK is registration with the FCA.
Securing authorisation from the FCA is critical, since this regulatory body oversees most financial services, including insurance brokering. This process involves several steps:
Once licensed, it’s the car insurance broker’s duty to adhere to the FCA’s ongoing regulations for keeping your licence. This includes completing Continuing Professional Development (CPD) activities and remain updated on industry or regulatory changes and advancements in regulatory practices. British insurance brokers should also comply with established ethical standards to ensure they treat clients fairly in all transactions.
While these are not mandatory, aspiring auto insurance brokers may want to earn some designations to enhance their credibility. Additional titles or designation may also give broker candidates an edge over other applicants. Those who wish to accomplish this may obtain their credentials from industry-recognized professional organisations, like the Chartered Insurance Institute (CII). Possible credentials include:
A part of how to become a qualified auto insurance broker in the UK is to gain the necessary experience. There are several ways to accomplish this:
Apart from the educational qualifications and experience, you will need to have and develop essential skills to become a successful auto insurance broker. Here are those skills:
Auto insurance brokers must do a lot of negotiating on behalf of their clients. The role also calls for them to explain complex terms, so knowing how to communicate properly is a key skill.
This is a key skill that brokers need to assess clients’ needs and recommend the most suitable policies.
A good car insurance broker pays attention to even the minutest of details when evaluating policies or assisting in making claims. This is necessary to avoid any errors or omissions that can cost their clients (or them) money.
The ability to negotiate for cheap car insurance and sell policies to clients makes for a successful car insurance broker.
A car insurance broker who remains up-to-date on insurance industry trends and new products, on insurance industry trends and new products, or even on changes in regulations can be invaluable to clients.
To succeed in this role, building and maintaining good relationships with clients is another key element. A strong focus on customer service can also help brokers attract and retain clients.
Part of customer service is informing clients about how to avoid deals that are too good to be true, such as unusually cheap premiums offered by ghost brokers. These are likely scams. Here’s a public service video you can share with your clients:
These essential skills can be learned and developed by taking courses, internships, and constant practice. It’s skills like these along with practicing active listening and guiding client conversations that can drive a broker’s success. By also addressing clients’ concerns, brokers can build trust and make their clients feel valued. Skilled brokers know how to encourage clients to share their situations, giving them insights on how to give clear answers that simplify complex policies and clarify coverage options.
Building your network is not only important for gaining new clients, but also for career growth and industry visibility. These strategies can set the stage for fruitful relationships and ultimately enhance your business prospects.
One of the most beneficial ways for networking is to serve as a connector between peers and clients. Introducing clients and insurance agents or brokers in your network can build goodwill and enhance your image as a trustworthy intermediary. When you help others make valuable connections, this increases your clout and influence within the community, giving you more opportunities to make collaborative efforts and get referrals.
Insurance conferences, seminars, and local business meetings enable brokers to meet peers, potential clients, and other industry professionals.
Leveraging online platforms like LinkedIn can be very helpful in building and maintaining your professional network. On platforms like this, you can engage with industry content, showcase your qualifications, and connect with other insurance professionals. You can use platforms like LinkedIn to follow up with new connections made at industry events, which can open the door to future collaborations.
Servicing your local community can also enhance your networking efforts. Providing auto insurance and advice on auto or even general insurance can endear you to fellow locals in your borough or city. Consider participating in local charity events, sports leagues, or business groups that align with your values. Engaging with other members of your community can help establish your reputation as a trusted professional, leading to referrals as thanks for your community service and involvement.
Finding and connecting with industry influencers can give you significant leverage for expanding your network. Influencers can include insurance agents, experienced brokers, or regulatory bodies in the sector. Building rapport with these individuals can provide you with insights and opportunities you may not ordinarily obtain via traditional networks.
After meeting clients for the first time, it’s important to stay in touch. Use emails, social media, or have meetups over coffee if appropriate. Customise your follow-up communications with clients to have specific discussions about their insurance needs. You can also meet about your shared interests to reinforce your communication and show sincerity in maintaining your business relationship.
Networking should not be viewed or done as a one-time activity. As with CPD, networking activities should be a regular practice of your business. Attending events, engaging online, and taking part in community activities maintains your credibility and visibility. Staying consistent and active in your networking efforts can ensure that you are in your peers’ and clients’ forefront when opportunities arise.
As with many other career paths, becoming a car insurance broker in the UK has its share of highlights and challenges. To help you decide on becoming a broker specialising in auto insurance, it helps to be passionate about automobiles, insurance, and helping people make informed decisions. When you enjoy helping clients safeguard their motor while making an earnest living, then your career can be twice as rewarding.
Did you find this piece on how to become a car insurance broker in the UK informative? Let us know in the comments.
