Client Onboarding Checklist for Brokers
A comprehensive guide to client onboarding for insurance brokers, covering information gathering, compliance requirements, documentation, and relationship building from first contact.
A well-structured client onboarding process sets the foundation for successful, long-term client relationships. For brokers, effective onboarding ensures you gather the information needed to serve clients properly, meet compliance obligations, and establish clear expectations from the outset.
This guide provides a comprehensive framework for onboarding new clients, from initial contact through to account setup and the first policy placement. While specific requirements vary based on your regulatory environment and business model, the principles and processes outlined here apply broadly across insurance broking practices.
Regulatory Context
This guide provides general information. Specific onboarding requirements depend on your regulatory authorisation, the types of insurance you handle, and your jurisdiction. For UK brokers, the Financial Conduct Authority's regulatory framework sets out specific conduct requirements.
Why Structured Onboarding Matters
Before diving into the process, it's worth understanding why a systematic approach to onboarding delivers better outcomes than ad-hoc methods.
For clients, structured onboarding demonstrates professionalism and organisation. It shows that you take their business seriously and have robust processes in place. This builds confidence and sets a positive tone for the relationship.
For your practice, consistent onboarding:
- Ensures you capture all necessary information the first time
- Reduces errors and omissions that can create problems later
- Creates a clear audit trail for compliance purposes
- Makes it easier to hand off clients between team members when needed
- Identifies potential issues or special requirements early
From a compliance perspective, documented onboarding processes demonstrate that you're meeting your obligations around client identification, demands and needs assessment, and disclosure requirements.
Phase 1: Initial Contact and Qualification
The onboarding process begins at first contact, whether that's an inbound enquiry, referral, or your own outreach. This initial phase focuses on establishing basic rapport and determining whether there's a good fit between the client's needs and your capabilities.
First Contact Checklist
When a potential client first makes contact, capture the following:
Initial Contact Information
- Full name and preferred form of address
- Contact details (phone, email, preferred contact method)
- How they found you (referral source, search, etc.)
- Brief overview of insurance needs
- Current insurance situation (existing cover, renewal date)
- Any time pressures or urgent requirements
- Best times for follow-up contact
Qualification Assessment
Not every enquiry will be a good fit for your practice. Early qualification saves time for both parties. Consider:
- Does the enquiry match your authorisations? Ensure you can actually provide the services they need.
- Is the client within your target market? Consider size, sector, and complexity.
- Are there any obvious red flags? Previous declined cover, unusual circumstances, or signs of potential fraud warrant careful consideration.
- Can you add value? If the client's needs are better served elsewhere, a referral may be the most professional response.
If the enquiry is a good fit, schedule a proper fact-finding meeting and explain what information they should prepare.
Phase 2: Fact-Finding and Needs Assessment
The fact-finding phase is where you gather the detailed information needed to understand the client's circumstances, assess their insurance needs, and recommend appropriate coverage.
Information Categories
Structure your fact-finding around these key areas:
Personal/Business Information
- Legal entity type and structure
- Business activities and operations
- Number of employees and contractors
- Turnover and financial information
- Locations and premises details
- Ownership structure
Current Insurance Arrangements
- Existing policies and coverage
- Current insurers and brokers
- Premium history
- Claims history (typically 3-5 years)
- Any declined or cancelled coverage
- Known gaps or concerns
Risk Profile
- Assets requiring cover
- Activities and processes
- Contractual obligations
- Regulatory requirements
- Risk management practices
- Previous losses and near-misses
Objectives and Constraints
- Coverage priorities
- Budget considerations
- Specific requirements (e.g., contractual minimums)
- Risk tolerance
- Decision-making process and timeline
Conducting the Fact-Find
Whether you conduct fact-finding in person, by video call, or through written questionnaires, certain principles apply:
Ask open questions to understand the full picture, not just the information that fits standard fields. "Tell me about your business" often reveals more than a checklist approach.
Listen for what's not said as well as what is. Clients may not mention risks they don't perceive, or may downplay past problems.
Document thoroughly with contemporaneous notes. Record not just answers but the questions asked and any assumptions or clarifications.
Explain why you need information when clients seem reluctant. Understanding the purpose often improves cooperation.
Verify key facts where possible. For significant accounts, this might include reviewing financial statements, visiting premises, or checking public records.
Phase 3: Documentation and Compliance
With fact-finding complete, you'll prepare documentation for both compliance and operational purposes.
Required Disclosures
Depending on your regulatory framework, you'll typically need to provide:
- Terms of Business Agreement (TOBA) outlining your relationship, remuneration, and obligations
- Privacy notice explaining how client data will be used
- Disclosure of your regulatory status and authorisation details
- Fair processing information for any data processing activities
- Complaints procedure and how clients can raise concerns
Ensure clients receive these documents, understand their contents, and confirm acceptance in a way you can evidence.
Client Identification
Anti-money laundering requirements typically require you to verify client identity. For individuals, this usually means photographic ID and proof of address. For businesses, you may need to identify beneficial owners and verify corporate existence.
Document what identification you've collected and how it was verified. Electronic verification is increasingly common but maintain records of the process.
File Setup
Create a comprehensive client file including:
- All fact-find documentation
- Copies of identification documents
- Signed terms of business
- Demands and needs statement
- Risk assessment notes
- Any advice given and recommendations
- Communications log
- Consent records
Whether physical or electronic, ensure files are organised consistently across your practice.
Phase 4: Recommendations and Placement
With full information gathered, you're ready to assess the market and make recommendations.
Demands and Needs Analysis
Document your analysis of the client's demands (what they've asked for) and needs (what cover you assess they require, which may differ). This analysis should:
- Reference the information gathered
- Explain your reasoning for recommendations
- Note any areas where client demands differ from assessed needs
- Highlight any limitations or exclusions of note
- Identify any significant risks that won't be covered
Presenting Options
When presenting insurance options:
- Explain clearly what each option covers and doesn't cover
- Highlight differences between alternatives
- Point out any unusual terms, conditions, or exclusions
- Confirm that recommendations meet the client's stated demands and needs
- Document the client's selection and reasoning
Binding Coverage
Before binding coverage:
Pre-Binding Checklist
- Client has confirmed coverage selection in writing
- All information provided has been verified as accurate
- Client understands key exclusions and conditions
- Payment arrangements are agreed
- Cover date and effective time are confirmed
- Appropriate authority exists to bind coverage
Phase 5: Post-Placement Follow-Up
Onboarding doesn't end when coverage binds. The post-placement phase ensures everything is in order and sets the tone for ongoing service.
Document Delivery
Ensure clients receive:
- Policy documents and schedules
- Certificates of insurance where required
- Claims notification procedures
- Key contact information
- Diary dates for reviews and renewal
Verify receipt and understanding, particularly for complex placements.
Account Review
Within the first few weeks, conduct a brief review:
- Confirm the client has received and understood documentation
- Check that coverage has started as expected
- Address any questions that have arisen
- Ensure payment is proceeding smoothly
- Confirm ongoing service expectations
Set Up Ongoing Service
Establish the framework for ongoing account management:
- Schedule any mid-term reviews if appropriate
- Set renewal diary dates with appropriate lead times
- Document any actions or follow-ups required
- Note any circumstances that might trigger mid-term changes
- Confirm preferred communication channels and frequency
Common Onboarding Pitfalls
Be alert to these frequent issues:
Rushing the process due to time pressure or client impatience. Taking shortcuts at onboarding creates problems that persist throughout the relationship.
Inadequate documentation that doesn't capture decisions and their reasoning. If it's not written down, it didn't happen from a compliance perspective.
Assuming understanding rather than confirming it. Clients may nod along without truly grasping key points.
Over-relying on forms at the expense of conversation. Questionnaires are useful but shouldn't replace genuine engagement.
Failing to manage expectations about service levels, response times, and what you can and can't do.