Broker pool

from Wikipedia, the free encyclopedia
This article or the following section is not adequately provided with supporting documents ( e.g. individual evidence ). Information without sufficient evidence could be removed soon. Please help Wikipedia by researching the information and including good evidence.

The term broker pool refers to the joint use of certain resources in the insurance sector and in the area of ​​brokerage of capital investments (investment funds and closed funds). The business of many insurance brokers or financial brokers is bundled (pooled) in a broker pool .

As a result, a well-managed broker pool can achieve a very high volume of sales and thus z. B. negotiate better conditions with insurance companies, building societies and providers of investment funds . Since 2002, special broker pools in the real estate finance sector have developed according to a similar pattern.

The broker pool can pass these advantages on to its members. They can pass on part of the advantage to their customers, for example through better coverage concepts or premium discounts, or skim it off as a return .

In addition, a broker pool can offer the affiliated brokers certain services. These include, among others

  • Provision of joint proposals
  • Provision of comparison computers, consulting and documentation software
  • Provision of an offer service as well as a broker management program (CRM)
  • Provision of one or more settlement platforms for the investment business
  • On-site support
  • Provision of internet services such as website service, comparison calculators and internet-based advisory programs
  • Implementation of training courses and / or subsidization of further training offers for brokers
  • Legal, tax and business advice for brokers

The term broker pool includes companies that operate very different business models:

  • Broker pools in the sense of underwriters - these are companies (especially in the property insurance sector) that offer insurance products - often under their own label - and take on their policy, administration and claims settlement. Underwriters are legally in the warehouse of the insurer and may not be registered as brokers
  • Broker pools in the sense of purchasing cooperatives - the pool negotiates framework agreements with the product providers. The individual broker then concludes a direct brokerage contract with the product provider and deals with the product directly. The pool receives a revenue share (often called overrider or overhead).
  • Broker pools in the sense of sales - the pool works in a similar way to sales. Some broker pools oblige their sales partners (brokers) to cooperate exclusively with their company. In this constellation, the independence of the broker is at risk.
  • Often, however, the intermediary has an extensive business relationship with the pool and uses its infrastructure and services, but does not enter into any formal obligation to exclusively use this pool.
  • Broker pools in the sense of a cooperative network for mutual support of the connected brokers ("broker association"). In this constellation, flat-rate or transaction-based fees are usually charged.

Some broker pools not only serve brokers, but also distributors, company-affiliated agents, multiple agents and tied agents (compare the representation about insurance intermediaries ). For the cooperation with tied agents according to § 84 HGB, the establishment of a separate company is necessary.

The market and the range of services offered by broker pools and associations are very heterogeneous. An overview of the most important broker pools in Germany can be found in the broker pool hit list from Cash magazine and the study broker pools, associations and service providers from BrunotteKonzept. The published figures are essentially based on responses from the broker pools, associations and service providers surveyed. The study “AssCompact AWARD - Pools & Service Providers” examines pools primarily from the intermediary's point of view. It is based on a survey of brokers and multiple agents. The individual performance and economic viability of the respective concept or business model can be assessed using the balance sheets published in the business register. However, these are often published with a delay of one to three years, if at all.

Meaning of broker pools

Brokers particularly appreciate the simplified access to product providers (mainly insurers, capital investment companies, issuing houses, building societies and real estate financiers) when working with broker pools. In addition, efficiency advantages in the processing of customer contracts and additional support in day-to-day sales are in demand. With the exception of the fund and investment division, the market share of the broker pools in the turnover of brokers has increased steadily in recent years.