How to choose an insurance broker in the UK

Choosing an insurance broker starts with checking the firm and understanding the service it offers. A broker is an intermediary that helps arrange insurance; the insurer provides the cover. Use the checks below to compare brokers before you buy.

Check FCA status and insurance permissions

Start with the FCA Firm Checker. Check the firm’s legal or trading name, status and permission for the insurance service you need. A reference number alone is not enough. The Financial Services Register provides fuller regulatory records, including information on individuals. Not every employee needs an individual entry.

Some firms operate as appointed representatives of an authorised principal. Check the principal and confirm the activities it accepts responsibility for. See the FCA’s guidance on firms and individuals. The FCA does not regulate every financial activity; insurers also fall within the PRA’s prudential remit.

Access the FCA website independently and use its listed contact details to confirm who you are dealing with. Fraudsters can copy a genuine firm’s name and reference number. Neither a listing nor the Firm Checker guarantees FOS or FSCS protection.

Ask which insurers and products are considered

Ask whether the broker uses a restricted panel or offers advice based on a fair and personal analysis, and which providers or products it excludes. A larger panel does not guarantee the best policy or include every insurer. Insurer logos do not establish current access.

Ask who provides the policy, who arranges it and who will advise you. A trading brand is not necessarily the insurer. Get the current scope of service in writing rather than relying on an old provider list.

Understand fees, commission and conflicts

Ask how the broker is paid: customer fees, insurer commission, other benefits or a combination. Commission is included in the premium. The firm must explain applicable fees, or how they are calculated, before you become liable for them. Ask about ongoing charges and how insurer relationships or remuneration could influence the recommendation. Commission-funded advice should not simply be described as free.

See the FCA’s rules on service and remuneration disclosures. Firms must act in customers’ best interests; remuneration must not conflict with that duty.

Look for relevant experience

Ask about experience with the type of cover and circumstances that matter to you. Firm size or years in business alone do not establish competence.

Brokers’ services vary. You may be looking for life cover, critical illness cover, income protection, personal accident cover or home insurance. Confirm what the broker handles itself and whether another firm would provide any part of the service.

Understand advised and non-advised sales

An advised sale includes a personal recommendation. A non-advised sale provides information and leaves you to choose without that recommendation. Both still require the insurance proposed to be consistent with your demands and needs.

For advice, the firm must take reasonable care over suitability and explain why its recommendation meets your needs. Ask for the demands-and-needs statement and the reasons for the recommendation. The FCA’s insurance advice rules cover these duties. Advice does not guarantee a claim payment or compensation.

Check policy terms and cancellation

Compare cover amounts, definitions, exclusions, excesses, waiting periods, benefit duration and cost. Ask what needs remain unmet, how existing cover affects the recommendation and what support is available when claiming or reviewing the policy.

Ask about cancellation rights and when the deadline starts. The FCA cancellation rules generally provide 30 days for pure protection or payment protection and 14 days for other insurance, with exceptions. Check the policy instructions and any permitted costs; exercising the statutory right to cancel pure protection cannot carry a charge.

Check complaints and compensation arrangements

Complain to the responsible firm first. For most insurance complaints, you can approach the free Financial Ombudsman Service if you are unhappy with its final response or have waited eight weeks without one. Eligibility applies; you normally have six months from the final response to refer the complaint, and other time limits can apply.

If a firm has failed and cannot meet an eligible claim, FSCS protection may apply. Claims against a failed broker differ from claims under a policy with a failed insurer. Eligibility and protection depend on the activity, policy and circumstances. Do not assume that every loss is covered or that an FCA listing guarantees compensation.

Verify unexpected approaches

Treat unexpected calls, emails and social-media messages cautiously, especially if you are pressured to decide quickly. Professional photos, friend counts and LinkedIn profiles do not prove identity or permission.

Confirm the person’s connection with the firm through independently checked contact details. A broker may work for an intermediary rather than an insurer. Follow the FCA’s scam-prevention guidance before sharing personal or payment information.

Use online reviews as supporting information

Read a range of recent reviews and look at how the business responds to concerns. Ratings on Google, Facebook or Trustpilot can describe customer experiences, but they do not verify regulatory status or prove that advice will suit you.

Reviews can be fake or misleading. A reviewer’s name or a firm’s absence from a particular platform is not enough to establish dishonesty. Use reviews alongside the checks above.

Check service information and communication

Look for clear information about the firm’s identity, services, charges and complaints process. Ask for explanations you understand and keep the documents provided. An individual adviser does not need a separate personal website to demonstrate their connection with a firm.

To discuss your insurance needs, contact Extend Finance and ask about the service, providers and costs available for your circumstances.