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Join Date: Aug 2010
Thanked 2 Times in 2 Posts
| | Re: Insurance Brokers
For General Insurance (insurance products other than Life/TPD/Income etc).
Insurance brokers can earn remuneration a number of ways;
2. An agreed fee with the client
3. In some cases, a fee as well as commission/brokerage
Commission/brokerage is only paid after a successful transaction, a fee may or may not be payable regardless of the success of the transaction (it will depend upon what has been agreed with the client in advance).
The remuneration structure of a transaction will depend upon the product being sold, complexity, premium involved and ultimately what the client is comfortable with.
Small one-off transactions are likely to be on a commission basis, larger more complex/expensive transactions are likely to be on an agreed fee basis.
Hope this helps