The data a valuer needs to value an insurance broking book, and why each item moves the number.
Use this checklist before you order a valuation of a general insurance book or brokerage. A book with annual recurring income under $2 million is valued for a fixed $1,495 + GST.
To value an insurance broking book, a valuer needs a client-level renewal register, two to three years of income reconciled to the broking system, the split between brokerage income, broker fees and other income, insurer and client concentration, your licence or authorised representative agreement, and your consent and complaints records. Missing or unreconciled data widens the valuation range and lowers what a buyer will rely on. Agency Valuations values insurance books for a fixed $1,495 + GST where the book's annual recurring income is under $2 million, delivered in 2 business days.
What financial records does a valuer need?
Start with income, because income rather than premium drives the value of a broking book. Every figure should reconcile to your accounts, so a buyer can rely on it.
| Item | Period | Why it matters |
|---|---|---|
| Income reports from the broking system, by month | Last 2 to 3 years | Shows the trend and seasonality of brokerage and fee income |
| Profit and loss statements and balance sheets | Last 3 financial years | Sets maintainable earnings where the whole brokerage is valued |
| Income split: brokerage income, broker fees, premium funding, other | Last 2 to 3 years | Each type of income has a different durability |
| New business income versus renewal income | Last 2 to 3 years | A buyer pays for the renewal stream; new business depends on who stays |
| Staff costs, and which account executive services each client segment | Current year | Sets the cost to service the book and flags key people |
| Licensee, network and system fees | Current year | Reduces the net income a buyer keeps |
| One-off income and mid-term refunds, flagged | Last 2 to 3 years | Large one-off placements or refunds distort the run rate |
What client-level data does a valuer need?
A renewal register exported from your broking system is the single most useful document. Use client codes instead of names if you prefer: the valuer needs the pattern, not the identity.
| Field | What to include | Why it matters |
|---|---|---|
| Client code | A unique code for each client, used in every year | Lets each client be tracked across renewals |
| Class of business | Personal lines, SME package, specialist or corporate | Classes renew and price differently |
| Insurer | The insurer, agency agreement or binder for each policy | Measures insurer concentration |
| Client since and renewal date | First year as a client and the next renewal date | Shows tenure and when income is at risk |
| Premium and income | Premium placed, brokerage income and any broker fee | Income, not premium, drives value |
| Account executive | Who looks after the client | Shows whether relationships depend on one person |
| Status history | Renewed, lapsed or cancelled mid-term, with reasons where known | Retention by client count and by income comes from this |
Which contracts and licence documents are needed?
The contracts decide what a buyer can actually take over, so they matter as much as the numbers.
- ·Your Australian financial services licence details, or your authorised representative agreement with every amendment
- ·Insurer agency or distribution agreements, and any binder authorities
- ·Premium funding arrangements
- ·Employment contracts for principals and account executives, including restraints
- ·Any buy-back formula, first right of refusal or shareholder agreement terms
- ·Office lease and key system or software contracts
- ·Earlier valuations, sale offers or approaches from buyers
What compliance records will a buyer and the valuer ask about?
Compliance gaps reduce what a buyer will pay, so the report records what was checked.
Since 9 July 2025, where personal advice is given to a retail client on a general insurance product, the client's informed consent is needed before insurer remuneration is accepted, and a consent can cover renewals where that was disclosed (Corporations Act s 963BB). Many brokers also subscribe to the Insurance Brokers Code of Practice, which the National Insurance Brokers Association owns and publishes and the Insurance Brokers Code Compliance Committee monitors. If a share sale of a licensee is planned, ASIC must be told of the change in control no later than 30 business days after it happens, so a buyer will look closely at the entity's history.
- ·How client consents to insurer remuneration are recorded, and how complete they are
- ·Complaints register and outcomes
- ·Breach reports and any remediation
- ·Code subscriber status and any findings from the Code Compliance Committee
- ·Professional indemnity insurance policy and claims history
How should you prepare the data?
- ·Export from the broking system rather than retyping, and reconcile totals to your accounts
- ·Use the same client codes in every year so clients can be matched
- ·Mark new business, renewals, lapses and mid-term cancellations separately
- ·Flag one-off placements, large refunds and any income from outside the book being valued
- ·Note any account executive who has resigned or plans to leave
- ·Check your privacy obligations with your licensee and your lawyer before sharing client-level information
What happens if some data is missing?
The valuation can still go ahead, but the range widens and the report states the assumptions used in place of missing data. A buyer relying on the report will discount anything that rests on an assumption.
The ATO's guidance on market valuations says a valuation report should, at a minimum, set out its purpose and scope, the asset valued, the valuation date and the records that explain the basis of value. Complete source data is what makes that record possible. Delivery time starts once payment and all required information have been received, so complete data also means a faster report.
What does a valuation of an insurance book cost?
Fees are fixed in writing before work starts and never depend on the value concluded. A book valued on its own is banded by its annual recurring income; a whole brokerage, or shares in it, by its total annual turnover. Add-ons are $495 per retrospective (past) valuation date and $795 per additional entity. Delivery time starts once payment and all required information have been received.
| Package | Annual revenue of what is valued | Fee | Delivery |
|---|---|---|---|
| Small Business Valuation | Under $2 million | $1,495 + GST | 2 business days |
| Medium Business Valuation | $2 million to $3 million | $2,495 + GST | 3 business days |
| Large Business Valuation | $3 million to $10 million | $3,495 + GST | 3 business days |
| Over $10 million | Above $10 million | Quoted in writing before work starts | Delivery date agreed before commencement |
| Expert report (dispute or court) | Any size | $4,495 + GST | Delivery date agreed before commencement |
- ·Corporations Act 2001 (Cth), s 963BB, Federal Register of Legislation
- ·Delivering Better Financial Outcomes (DBFO) package, ASIC
- ·About the Insurance Brokers Code of Practice, Insurance Brokers Code Compliance Committee
- ·Change in control of AFS licensee, ASIC
- ·Market valuation of assets, Australian Taxation Office
Common questions.
What is the most important document for valuing an insurance book?+
The renewal register: a client-level export from your broking system showing class of business, insurer, renewal dates, income and status over two to three years. Retention by client count and by income, insurer and client concentration, and client tenure are all measured from it.
Do I need to give the valuer client names?+
No. Client codes are enough, provided the same code is used for each client in every year. The valuer needs to see the pattern of renewals and income, not who the clients are. Check your privacy obligations with your licensee and your lawyer before sharing client-level data.
How many years of data should I provide for an insurance book valuation?+
Two to three years of income and renewal data, plus three years of financial statements where the whole brokerage is being valued. That is enough to measure retention and trend. A book with a shorter history can still be valued, but the range is wider and the report says why.
Why does the valuer need my authorised representative agreement?+
Because it can decide who owns the client relationships, whether your licensee must consent to a sale, which restraints apply, and whether the licensee has a first right of refusal or a buy-back formula. Those terms change who can buy the book and on what terms, which changes its value.
What does it cost to value an insurance book?+
The fee is fixed and set by the book's annual recurring income, or the whole brokerage's turnover. Under $2 million it is $1,495 + GST, delivered in 2 business days; $2 million to $3 million is $2,495 + GST and $3 million to $10 million is $3,495 + GST, each delivered in 3 business days. Above $10 million the fee is quoted in writing before work starts.
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Small Business Valuation
$1,495 + GST
For an agency, rent roll or book with annual revenue of what is valued under $2 million. A written report, delivered in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the value we reach.
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