How to Choose a Personal Lines Insurance Broker in South Africa

By Dianne Silva Published May 1, 2026 Updated September 6, 2026 10 min read

Using a broker does not cost more than going direct – this is a marketing gimmick by direct insurers. The commission is built into the premium regardless. What you get from the right broker is independent advice across multiple insurers, correct cover structure, and someone who handles claims on your behalf when things go wrong.

Personal lines insurance covers the things most people insure as individuals and families: your car, your home, your household contents, your portable possessions, your personal liability. It is a market where consumers regularly pay for the wrong cover, at the wrong values, with products structured to benefit the insurer rather than the insured.

A good broker changes that. A disconnected one makes it worse. Here is how to tell the difference.

What personal lines covers

Personal lines is the term used in the South African insurance industry for insurance products arranged for individuals and households as opposed to commercial entities. It includes:

Motor insurance: comprehensive, third-party fire and theft, or third-party only cover for your personal vehicles
Building insurance: structure of your home, permanent fixtures, boundary walls, outbuildings
Home contents insurance: movable possessions within the home
All-risk or specified items cover: valuables and portable items that travel with you
Personal liability: your liability as an individual for accidental injury or property damage caused to third parties
Portable possessions: laptops, cameras, jewellery, phones used outside the home
Watercraft and leisure craft: boats, jet skis, and related equipment

Beyond short-term personal lines, a broker may also advise on life insurance, income protection, disability cover, and medical aid, though these involve different regulatory frameworks and brokers must hold the appropriate licences and product subcategories for each.

The cost question: does a broker cost more?

The most common hesitation about using a broker is the assumption that there is an additional cost. There is not.

Insurance brokers in South Africa are remunerated by commission paid by the insurer: a percentage of the premium. This commission is built into the premium structure regardless of whether you buy through a broker or directly from the insurer. Going directly to an insurer does not reduce your premium; it means the insurer retains the commission rather than paying it to a broker who would otherwise be providing advice and service.

Put simply: you pay the same premium either way. With a broker, you get advice, multi-insurer comparison, policy review, and claims assistance. Without one, you get the insurer’s call centre.

There is one exception worth noting. Some brokers charge a fee in addition to commission, particularly for complex or high-value personal lines arrangements and for the additional service offering they give their clients, over and above of what is covered by standard commission. This must be disclosed upfront. Ask any broker you engage whether they charge fees, and what those fees cover, before proceeding.

The non-negotiable: FSCA registration

Every person or entity providing financial advice on insurance products in South Africa must be registered with the Financial Sector Conduct Authority (FSCA) as an authorised financial services provider (FSP). This is a legal requirement under the Financial Advisory and Intermediary Services (FAIS) Act.

An FSP number is the ID number assigned to an authorised provider. It must appear on letterheads, business cards, and digital communications. You can verify any FSP number directly on the FSCA website at fsca.co.za using the FSP search function.

Dealing with an unregistered broker means you have no regulatory protection if something goes wrong. You cannot lodge a complaint with the FSCA, you cannot approach the Ombud for Financial Services Providers, and you may have no recourse if the broker places your premium without arranging the cover. Verifying the FSP number takes two minutes. Always do it.

Seven questions to ask before choosing a broker

What is your FSP number?
Every legitimate broker has one. It should be on their business card or letterhead without being asked. If they hesitate or cannot provide it, stop there.
Which insurers do you work with?
A good personal lines broker should have access to multiple insurers: Santam, Hollard, OUTsurance, Bryte, Discovery Insure, Momentum, Old Mutual Insure, and others. A broker tied to a single insurer cannot compare the market on your behalf. Ask specifically how many insurers they place business with and whether they receive any performance incentives from a particular insurer.
Do you hold professional indemnity insurance?
Professional indemnity (PI) protects you if the broker gives negligent advice that causes you financial loss. If the broker recommends inadequate cover and a claim is declined as a result, PI provides a route to recover that loss. Brokers are not legally required to hold PI, but it is a strong indicator of professionalism.
What categories are you licensed to advise on?
FSP licences specify the categories of financial products a broker can advise on. Short-term personal lines insurance is one category. Life insurance, medical aid, and investments are separate. Confirm that the broker is licensed for the specific products you need advice on.
How do you handle claims?
This is where the difference between a good and a mediocre broker is most visible. Ask specifically: do you assist with claim submission? Do you liaise with the insurer and assessor on my behalf? Do you appoint and manage contractors on our behalf? Have you ever successfully challenged a claim decline? Claims support is one of the primary reasons to use a broker rather than going direct.
How often do you review my portfolio?
A broker who places your cover and makes contact only at renewal is not providing ongoing value. Annual portfolio reviews (checking that sum insured values are current, that new purchases are covered, that life changes such as marriage, a new vehicle, or a home renovation are reflected) are standard practice for a broker who is genuinely managing your risk rather than just collecting commission.
Do you charge any fees above commission?
If yes, what are they, when do they apply, and what do you receive for them? Fees are not inherently problematic, but they must be disclosed and you must understand what you are paying for. An old fashioned broker, who focusses on specialised and personalised service, ones that prioritise client service will regularly charge policy fees – either a flat fee, or a percentage of commission.

Red flags when choosing a broker

Broker versus direct insurer: when each makes sense

There are situations where direct insurance (buying from the insurer directly, typically through a call centre or app) is a reasonable choice. Very simple, standardised products (entry-level motor or basic home contents) where the main variable is price and the cover is similar across providers are reasonably suited to direct purchase.

The case for a broker strengthens as your situation becomes more complex:

Multiple vehicles, properties, or risk categories to coordinate
High-value assets where correct valuation and adequate limits matter significantly
Non-standard risks (classic cars, collector items, home-based business equipment)
A previous claim history that affects eligibility or premium
Any situation where the right policy structure is not obvious from the product brochure

The value of a broker is most visible at claim time. When an insurer declines a claim, raises a dispute, or offers a settlement that does not reflect the policy terms, a broker who knows your cover, knows the insurer’s obligations, and has a relationship with the underwriter is a material asset. That is not something a call centre can replicate.

One question-answering session, multiple quotes: When you call a direct insurer, you answer their questions and receive one quote for one product. When you engage an independent broker, you answer similar questions once and the broker compares options across multiple insurers on your behalf. The time cost is the same; the range of options and the quality of advice are not.

Frequently asked questions

How do I verify whether a broker is FSCA registered?

Go to the FSCA website at fsca.co.za and use the FSP search function. You can search by the broker’s business name, individual name, or FSP number. The search will confirm whether the entity is authorised, which categories they are licensed for, and the current status of their registration. If the search returns no result or shows a deregistered or suspended status, the person is not authorised to provide financial advice. Do not proceed.

Can I switch brokers without it affecting my existing cover?

Yes. Your insurance policy is between you and the insurer; the broker is an intermediary. You can change brokers by notifying your insurer that you are appointing a new broker of record. Your existing cover continues on the same terms. The new broker takes over the management of your portfolio from that point. The only consideration is whether any mid-term changes (new quotes, cover restructuring) might trigger a review of your premium, which any new broker will discuss with you upfront.

What happens if my broker gives me wrong advice that leads to a declined claim?

If your broker’s negligent advice (recommending incorrect cover, failing to disclose a relevant risk factor, or placing cover that does not match what they told you it covered) results in a claim being declined, you may have a claim against the broker. This is covered by their professional indemnity insurance if they hold it. You can also lodge a complaint with the FSCA or the Office of the Ombud for Financial Services Providers (FAIS Ombud). The FAIS Ombud investigates complaints against authorised financial services providers at no cost to the consumer.

My broker only ever contacts me at renewal. Is that normal?

It is common, but it is not the standard you should accept. A broker who contacts you only at renewal is managing the administrative minimum of the relationship. A broker actively managing your portfolio should contact you when something changes (insurer risk appetite shifts, a product you hold changes its terms), when something in your life suggests your cover needs review (you mention a new vehicle, a renovation, a new child), and proactively before each renewal with a genuine comparison of your current cover against the market. If your current broker is not doing this, it is a fair reason to look for one who does.

Looking for an independent personal lines broker?

Graham Silva Insurance Consultants has been providing independent personal and commercial insurance advice since 1980. FSP No. 5671, FSCA-registered, FAIS and POPIA compliant. Get in touch and we will review your current portfolio.

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