Starting an independent brokerage in Canada takes more than just licenses and funding. According to Trevor McIntosh (pictured), president of coverboo Insurance Brokers Inc. and founder of Principal Broker Services, the real challenges are cultural, structural, and deeply systemic.
“There’s a lot more than just operational barriers,” McIntosh said. “They’re systemic. You’re facing a lack of guidance, ambiguity in the process, and an industry that doesn’t encourage newcomers. In fact, it often discourages them.”
On paper, licensing appears achievable. But in practice, McIntosh says it’s wrapped in red tape – and marked by a lack of mentorship.
“When I told people I was starting an insurance brokerage, no one encouraged me,” he said. “There’s almost this assumption you’ll fail - or that you’re crazy to try.”
Despite relatively modest capital requirements, the true costs escalate quickly. “You need regulatory filings, mandatory insurance, a compliance framework – and someone qualified to supervise,” he said. “Even then, without the right connections, you’ll be stuck.”
Canada’s broker tech stack remains notoriously rigid, McIntosh said. He encourages a lean approach instead, using free or low-cost tools such as HubSpot or Salesforce to build smarter.
“You don’t need to default to expensive broker management systems,” he said. “But the vendor landscape stifles innovation – especially around quoting engines and CRMs.”
Beyond tools, he said there was a broader issue: people don’t know where to start. “I put together a plain-language guide to starting a brokerage,” he said. “The response has been great, brokers don’t realize this path is even available to them.”
In Ontario, brokers must secure letters of intent from two insurance carriers to finalize licensing – a step McIntosh calls the biggest structural barrier of all.
“That’s where most people hit a wall,” he said. “The answer is often, ‘Come back when you’ve got a million in premium.’ But how do you get there without anything to sell?”
While MGAs are often more accessible, they aren’t enough on their own. And with many carriers consolidating or acquiring brokerages, new entrants face growing resistance. “They’re not incentivized to support someone who might eventually compete with them,” McIntosh said.
Even franchise or banner models – pitched as turnkey solutions – can fall short. “Some are outright predatory,” McIntosh said. “And when you want to strike out on your own, the support disappears.”
To create real change, McIntosh believes the industry needs a national, centralized resource hub that clearly explains costs, compliance, and timelines – province by province.
“Right now, you’re piecing together outdated PDFs and half-replied emails from different regulators,” he said. “There’s no one place where people can understand the full process.”
He was also critical of the lack of clarity around carrier commitment letters. “Even some carrier reps don’t understand what they are. That tells you how broken the system is.”
While regulatory reform would help, McIntosh said that grassroots pressure is more urgent. “If we don’t make noise, we’ll end up with five brokerages controlling the entire market.”
Despite the industry’s inertia, McIntosh sees rising consumer appetite for independent, relationship-driven service.
“There’s a shift happening. People want to support local businesses,” he said. “When your family-run broker sells to a big chain, you’re just a number overnight.”
To foster more accountability, he proposes a certification model that recognizes carriers actively supporting startups. “Let’s reward those companies that actually support start-up brokerages by working with them and not just talking about it at conferences.”
His message to the industry is saimple: it’s time to make room. “If we don’t preserve space for new voices, we lose what made this industry great,” he said. “It used to be about building something from the ground up. It still can be.”
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