01 / The meaning
What it means.
The appointment’s scope should be clear. It may allow a broker to obtain policy information, discuss renewal or provide ongoing service, but it should not be assumed to authorise every change or cancellation. Insurers can have their own process for recognising a new appointment. A signed instruction and the insurer’s records may therefore need to be reconciled.
Changing brokers is different from changing insurers or replacing a policy. Existing cover dates, open claims and obligations can continue while service responsibility changes. Discuss who handles outstanding matters, what information can be obtained and whether fees or other remuneration implications apply. Keep a copy of the authority and notify the relevant parties through the agreed process to avoid conflicting instructions.
02 / Put it in context
A practical example.
Hypothetical example: A business appoints a new broker shortly before renewal while an earlier property claim remains open. The owner confirms which broker will assist with that claim and what authority the new broker holds. The appointment alone does not replace the insurance contract.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Check the policies, entities and actions covered by the written appointment.
- Confirm when the insurer recognises the new servicing arrangement.
- Clarify open claims, renewal tasks and any disclosed fees.
04 / Start a useful conversation
A question for your broker.
What does this appointment authorise the broker to do on our behalf?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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