Paul Howley: From account executive to startup broker

Building a new broking business can be both expensive and time consuming – Innovative Risk Labs chief executive Ed Gaze, for example, cited in June 2023 that this process, on average, can take up to four years and cost between £750,000 and £1m.

Therefore, for those with additional caring responsibilities or that need a steady income, this leadership opportunity could be off the table.

However, this was the precise challenge that former Gauntlet Group account executive Paul Howley surmounted when he launched new broker Gauntlet Select on 1 June 2024.

He was able to start the business after completing Gauntlet Group’s Brokerage Builder programme. Launched in July 2023, this scheme enables insurance professionals to create an appointed representative (AR) broking business while still being employed and earning a salary. This process takes 22 months.

An AR is an individual or firm that undertakes regulated activities and acts as an agent for any firm directly authorised by the FCA, known as the principal.

For example, an AR with a general insurance contract, engaged for insurance distribution activities, can both arrange and assist with the administration and performance of an insurance contract.

Howley, now the managing director of Gauntlet Select, is the first to complete the Brokerage Builder programme.

Speaking exclusively to Insurance Times, Howley says: “I have always had an entrepreneurial spirit and wanted to run my own business – to have something that is mine, that I can be proud of, as well as [having the ability] to make decisions about how that business develops.

“I have a family to look after as well, therefore it was difficult to just start from scratch and take the risk of building a business with no income. But I am now an appointed representative of Gauntlet.

”[Gauntlet Select is] my own established business, but we use Gauntlet Group’s back office and terms of placement with insurers. The agencies are all with Gauntlet. The client makes the payment to Gauntlet – the clients are then looked after by myself and Gauntlet provides some administrative broking support.”

Gauntlet Select launched with a focus on commercial property cover and professional indemnity insurance. However, Howley already has plans to further build out the broker’s proposition.

He says: “I am looking at focusing efforts going forward on the taxi business that I would like to bring on board.

”I’ve had reasonable success with commercial property owners over the last year or two, as well as companies that need professional indemnity – a more technical rather than off the shelf policy. You’ve got to grasp how those businesses operate and what cover they need to fit their requirements.”

One facet of the Brokerage Builder programme that ensured Gauntlet Select could hit the ground running was that Howley was able to bring a certain number of clients he had acquired during his tenure at Gauntlet Group into the new broker. This ensured the business was not “starting from scratch”.

He adds: “That was unique compared to anything else [offered] by any of the other networks that I am aware of.” 

Howley joined Gauntlet Group in November 2020 as an account executive and looked after a book of commercial clients.

‘Tough’ to get going 

Despite the fact that Howley “always had an ambition to establish his own business”, this journey did not come without its challenges.

Howley admits: “It’s tough out there. I was surprised that I have done reasonably well over the last 12 months. It was a matter of hard work and dedication – contacting leads and understanding customer needs.

”It’s difficult to establish a startup broker these days because of the scale that insurers need to have agencies. It’s difficult without that to then obtain new clients because you can’t access the full market. Even established brokers might need to be part of a network to get access to certain insurance products.

”[This process is] not impossible, but there are definitely barriers that make it more difficult than it should be. Commission levels met would likely be on a standard or lower basis also.”

For Howley, this challenge around scale is why some startup brokers or insurtechs become ARs first and then move to direct authorisation further down the line.

Howley notes that he also encountered regulatory challenges, such as getting approval from the FCA – he believes this is one of the main barriers to launching new brokers due to the lengthy process involved.

Looking ahead

Moving forward, Howley’s immediate plans are making sure that his clients are looked after.

He has ambitions in the near future to open his own office, but he acknowledges that he’s currently taking it one step at a time.

He says: “It is that same old story – you’ve got to get your name out there, get enquiries and build trust. That’s something I am trying to build upon.”