The Strategic Role of Broker Pools in Insurance Distribution
As an insurance broker, your choice of business partners is fundamental to your efficiency and success. Currently, the industry standard involves collaboration with broker pools—specialized intermediaries that provide access to multiple insurers, crucial tools, and support services. Recent data from the 15th AfW Vermittlerbarometer reveals a telling trend: while brokers continue to depend on these pools, the average number of partnerships is consolidating. Today, the typical broker works with 1.9 pools, down from 2.3 in 2019. This indicates a move towards more focused, strategic relationships rather than casting a wide net. Notably, working with a single pool partner is not yet the norm, with only 40.5% of brokers doing so.
Once a partnership is established, loyalty is high. A significant 83% of brokers report no desire to change their current pool affiliations. Only about 10% plan to reduce their partnerships, while a mere 6% intend to increase them. This stability underscores the critical importance of the initial selection process, as two-thirds (67%) of a broker's total revenue is processed through these pool channels.
What Do Brokers Value Most? The Decisive Selection Criteria
Choosing the right broker pool is a strategic decision. The AfW survey clearly outlines the factors that carry the most weight for intermediaries. The results show that brokers prioritize operational support and competitive advantage over sheer size or immediate financial gain.
| Selection Criterion | Percentage Rating as "Very Important" or "Important" | Why It Matters for Your Business |
|---|---|---|
| Tools & Digital Platforms | 91.8% | Efficient quote generation, client management (CRM), and application processing are non-negotiable for productivity in a digital age. |
| Product Portfolio & Range | 91.2% | Access to a wide, competitive selection of policies from various insurers allows you to find the perfect fit for each client's unique needs. |
| Service & Advisory Support | 88.4% | Expert back-office support for complex cases, claims assistance, and regulatory guidance saves you time and reduces errors. |
| Overall Digitalization Level | 85.8% | A tech-forward pool invests in seamless integration, APIs, and online tools that future-proof your operations. |
| Training & Continuing Education | 77.2% | Staying compliant and knowledgeable about new products and regulations is essential for maintaining your advisory edge. |
| Commission Structure | 73.2% | While important, competitive compensation is seen as a baseline; superior service and tools often outweigh marginal commission differences. |
| Size of the Broker Pool | 48.1% | Market presence is less critical than the quality of service and the specific tools offered, debunking the "bigger is always better" myth. |
Norman Wirth, Managing Director of the AfW Bundesverband Finanzdienstleistung e.V., summarizes the sentiment: "It's not the size, but the quality of service, as comprehensive as possible, that is the main selection criterion when choosing a pool or network. It is no surprise that, given increasing regulatory requirements and an ever more confusing array of product offerings, the available technology plays the most important role in the selection of a pool."
Beyond Selection: What Services Do Brokers Actually Use?
Choosing a pool based on its offerings is one thing; actively utilizing them is another. While the latest survey did not repeat this specific question, data from the previous 14th Vermittlerbarometer provides valuable insight into actual usage patterns:
- Most Used: Continuing education offers (81.5%) and software solutions (79.6%).
- Frequently Used: Product training (63.4%) and product information (61.7%).
- Less Utilized: Legal support (52.2%) and pre-selected product recommendations (43.2%).
This pattern confirms that brokers highly value resources that enhance their expertise (training) and streamline their workflow (software), aligning perfectly with their stated selection priorities.
Conclusion: Choosing a Partner for the Future
The data paints a clear picture for today's insurance broker. In a complex and regulated market, your broker pool is more than just a gateway to insurers; it's a strategic technology and service partner. The trend towards fewer, deeper partnerships suggests brokers are seeking integrated solutions that offer robust digital tools, a comprehensive product range, and exceptional support—all designed to make you more efficient and effective in serving your clients.
When evaluating potential pool partners, look beyond size and upfront commissions. Prioritize those who invest in the digital infrastructure and advisory support that will help you navigate future challenges, grow your business, and ultimately, secure the long-term loyalty that defines the broker-pool relationship today.
About the Study: The annual AfW Vermittlerbarometer, conducted in cooperation with the association's sponsoring members for the 15th time in October/November 2022, surveyed over 1,300 participants. Nine out of ten respondents hold a license for insurance mediation, with 87% operating as independent brokers. The findings provide a representative snapshot of the German insurance intermediary landscape.