How to Start an Insurance Advice Business in New Zealand: Setup guide and costs
Warwick Slow
11 Nov 2025
Personal risk insurance advice business. Setup costs, key steps and timeframes
Starting a personal risk insurance advice business in New Zealand usually takes between 2-3 months, depending on factors like FSPR registration, FMA licensing and insurer onboarding. One-off setup costs typically range from $3,000–$6,000, with ongoing annual expenses of $7,000–$11,000 for a lean single-adviser setup. These are indicative only.
Typical one-off setup, approx. $3,000–$6,000 total
Company name reservation and incorporation: ~$148 incl GST
FSPR registration: ~$1,048, this includes the application fee, criminal history check and FMA levy
FAP full licence, Class 1–2: ~$704–$882 incl GST
Aggregator or CRM onboarding: some groups charge $250–$500 upfront, others bundle onboarding into monthly fees or operate on a commission split model
Domain, website and hosting, first year: $200–$600, think $20–$40 for a domain and $15–$50 per month for hosting
Email and productivity suite: $10–$20 per user per month
PI insurance: typically $2,000–$3,000 per year
Typical annual and ongoing, approx. $7,000–$11,000 total
Companies Office annual return: ~$57.20 incl GST
FSPR annual confirmation: ~$875 incl GST, this includes adviser and FAP levies
Dispute Resolution Scheme: around $350 per year, varies by scheme
Aggregator, CRM and compliance services: commonly $300–$700 per month, some groups run on a commission split model
Domain, website and hosting: $200–$600 per year
PI insurance: $2,000–$3,000 per year
Email and productivity suite: $10–$20 per user per month
Other tools: e-sign, calendar booking, marketing automation and comparison tools, budget $30–$150 per month
Important note on aggregator pricing and overrides
Some groups advertise low-cost or free access. In a few cases, this is subsidised by the override commission received from insurers. Always ask any potential provider if they receive commission or other benefits from insurers, and how that may affect your commercial terms.
Earning potential. How commissions work in personal risk
Insurers offer varying commission structures. As a general guide, upfront commission is often around 200%–230% of API (annual premium income). There may also be renewal or servicing commission, and most providers apply clawback periods on upfronts if a policy lapses early. Exact rates, clawbacks and eligibility rules vary by product and insurer.
Key steps
Incorporate your company
Register on the FSPR and join a DRS
Apply for your FAP full licence, Class 1 or 2
Arrange PI insurance and implement your compliance programme
Set up your software stack, CRM, e-sign, secure storage, website and email
Engage insurers for onboarding, either directly or via an aggregator
Establish advice processes, fact-find, research and comparison approach, file reviews and QA
FAQs
How long does it take to start?
Most setups complete in 2–3 months. Timeframes depend on FSPR processing, FMA licensing and insurer onboarding. Much of this is waiting time.
Do I need qualifications?
Yes. Advisers must meet the Code’s knowledge, competence and skill standards. Many meet this via the New Zealand Certificate in Financial Services, Level 5, with the relevant risk insurance strands.
How much can the business earn?
Earnings depend on your mix of products, placement rates, persistency and service model. As a broad indicator, upfront commission is generally around 200%–230% of API. Renewal or servicing commission may apply by insurer and product. Clawback policies can materially impact cash flow in the first two years, plan accordingly.
Do I need an aggregator?
Not always. Depending on your experience, you may be able to secure direct agreements with insurers. Consider using an aggregator if they add tangible value, for example training, compliance support, file reviews, CRM systems, discounts on tools like PI insurance, and comparison or research platforms.
What drives costs up or down?
Team size, your CRM or compliance package, website scope, PI cover level, the extent you outsource compliance, and how many tools you subscribe to.
Thinking about becoming an adviser.
If you are exploring how to enter the industry, this guide is a great starting point.
How to become an insurance adviser in New Zealand
This guide is indicative only. Always confirm current fees, levies and insurer terms, they change from time to time.
Personal risk insurance advice business. Setup costs, key steps and timeframes
Starting a personal risk insurance advice business in New Zealand usually takes between 2-3 months, depending on factors like FSPR registration, FMA licensing and insurer onboarding. One-off setup costs typically range from $3,000–$6,000, with ongoing annual expenses of $7,000–$11,000 for a lean single-adviser setup. These are indicative only.
Typical one-off setup, approx. $3,000–$6,000 total
Company name reservation and incorporation: ~$148 incl GST
FSPR registration: ~$1,048, this includes the application fee, criminal history check and FMA levy
FAP full licence, Class 1–2: ~$704–$882 incl GST
Aggregator or CRM onboarding: some groups charge $250–$500 upfront, others bundle onboarding into monthly fees or operate on a commission split model
Domain, website and hosting, first year: $200–$600, think $20–$40 for a domain and $15–$50 per month for hosting
Email and productivity suite: $10–$20 per user per month
PI insurance: typically $2,000–$3,000 per year
Typical annual and ongoing, approx. $7,000–$11,000 total
Companies Office annual return: ~$57.20 incl GST
FSPR annual confirmation: ~$875 incl GST, this includes adviser and FAP levies
Dispute Resolution Scheme: around $350 per year, varies by scheme
Aggregator, CRM and compliance services: commonly $300–$700 per month, some groups run on a commission split model
Domain, website and hosting: $200–$600 per year
PI insurance: $2,000–$3,000 per year
Email and productivity suite: $10–$20 per user per month
Other tools: e-sign, calendar booking, marketing automation and comparison tools, budget $30–$150 per month
Important note on aggregator pricing and overrides
Some groups advertise low-cost or free access. In a few cases, this is subsidised by the override commission received from insurers. Always ask any potential provider if they receive commission or other benefits from insurers, and how that may affect your commercial terms.
Earning potential. How commissions work in personal risk
Insurers offer varying commission structures. As a general guide, upfront commission is often around 200%–230% of API (annual premium income). There may also be renewal or servicing commission, and most providers apply clawback periods on upfronts if a policy lapses early. Exact rates, clawbacks and eligibility rules vary by product and insurer.
Key steps
Incorporate your company
Register on the FSPR and join a DRS
Apply for your FAP full licence, Class 1 or 2
Arrange PI insurance and implement your compliance programme
Set up your software stack, CRM, e-sign, secure storage, website and email
Engage insurers for onboarding, either directly or via an aggregator
Establish advice processes, fact-find, research and comparison approach, file reviews and QA
FAQs
How long does it take to start?
Most setups complete in 2–3 months. Timeframes depend on FSPR processing, FMA licensing and insurer onboarding. Much of this is waiting time.
Do I need qualifications?
Yes. Advisers must meet the Code’s knowledge, competence and skill standards. Many meet this via the New Zealand Certificate in Financial Services, Level 5, with the relevant risk insurance strands.
How much can the business earn?
Earnings depend on your mix of products, placement rates, persistency and service model. As a broad indicator, upfront commission is generally around 200%–230% of API. Renewal or servicing commission may apply by insurer and product. Clawback policies can materially impact cash flow in the first two years, plan accordingly.
Do I need an aggregator?
Not always. Depending on your experience, you may be able to secure direct agreements with insurers. Consider using an aggregator if they add tangible value, for example training, compliance support, file reviews, CRM systems, discounts on tools like PI insurance, and comparison or research platforms.
What drives costs up or down?
Team size, your CRM or compliance package, website scope, PI cover level, the extent you outsource compliance, and how many tools you subscribe to.
Thinking about becoming an adviser.
If you are exploring how to enter the industry, this guide is a great starting point.
How to become an insurance adviser in New Zealand
This guide is indicative only. Always confirm current fees, levies and insurer terms, they change from time to time.
Personal risk insurance advice business. Setup costs, key steps and timeframes
Starting a personal risk insurance advice business in New Zealand usually takes between 2-3 months, depending on factors like FSPR registration, FMA licensing and insurer onboarding. One-off setup costs typically range from $3,000–$6,000, with ongoing annual expenses of $7,000–$11,000 for a lean single-adviser setup. These are indicative only.
Typical one-off setup, approx. $3,000–$6,000 total
Company name reservation and incorporation: ~$148 incl GST
FSPR registration: ~$1,048, this includes the application fee, criminal history check and FMA levy
FAP full licence, Class 1–2: ~$704–$882 incl GST
Aggregator or CRM onboarding: some groups charge $250–$500 upfront, others bundle onboarding into monthly fees or operate on a commission split model
Domain, website and hosting, first year: $200–$600, think $20–$40 for a domain and $15–$50 per month for hosting
Email and productivity suite: $10–$20 per user per month
PI insurance: typically $2,000–$3,000 per year
Typical annual and ongoing, approx. $7,000–$11,000 total
Companies Office annual return: ~$57.20 incl GST
FSPR annual confirmation: ~$875 incl GST, this includes adviser and FAP levies
Dispute Resolution Scheme: around $350 per year, varies by scheme
Aggregator, CRM and compliance services: commonly $300–$700 per month, some groups run on a commission split model
Domain, website and hosting: $200–$600 per year
PI insurance: $2,000–$3,000 per year
Email and productivity suite: $10–$20 per user per month
Other tools: e-sign, calendar booking, marketing automation and comparison tools, budget $30–$150 per month
Important note on aggregator pricing and overrides
Some groups advertise low-cost or free access. In a few cases, this is subsidised by the override commission received from insurers. Always ask any potential provider if they receive commission or other benefits from insurers, and how that may affect your commercial terms.
Earning potential. How commissions work in personal risk
Insurers offer varying commission structures. As a general guide, upfront commission is often around 200%–230% of API (annual premium income). There may also be renewal or servicing commission, and most providers apply clawback periods on upfronts if a policy lapses early. Exact rates, clawbacks and eligibility rules vary by product and insurer.
Key steps
Incorporate your company
Register on the FSPR and join a DRS
Apply for your FAP full licence, Class 1 or 2
Arrange PI insurance and implement your compliance programme
Set up your software stack, CRM, e-sign, secure storage, website and email
Engage insurers for onboarding, either directly or via an aggregator
Establish advice processes, fact-find, research and comparison approach, file reviews and QA
FAQs
How long does it take to start?
Most setups complete in 2–3 months. Timeframes depend on FSPR processing, FMA licensing and insurer onboarding. Much of this is waiting time.
Do I need qualifications?
Yes. Advisers must meet the Code’s knowledge, competence and skill standards. Many meet this via the New Zealand Certificate in Financial Services, Level 5, with the relevant risk insurance strands.
How much can the business earn?
Earnings depend on your mix of products, placement rates, persistency and service model. As a broad indicator, upfront commission is generally around 200%–230% of API. Renewal or servicing commission may apply by insurer and product. Clawback policies can materially impact cash flow in the first two years, plan accordingly.
Do I need an aggregator?
Not always. Depending on your experience, you may be able to secure direct agreements with insurers. Consider using an aggregator if they add tangible value, for example training, compliance support, file reviews, CRM systems, discounts on tools like PI insurance, and comparison or research platforms.
What drives costs up or down?
Team size, your CRM or compliance package, website scope, PI cover level, the extent you outsource compliance, and how many tools you subscribe to.
Thinking about becoming an adviser.
If you are exploring how to enter the industry, this guide is a great starting point.
How to become an insurance adviser in New Zealand
This guide is indicative only. Always confirm current fees, levies and insurer terms, they change from time to time.