FAQ
Concise answers to key topics about brokerage and premiums.
As a rule, the broker’s commission is paid by the insurer issuing the policy, so there is no extra cost for the client. Only in exceptional, pre-agreed cases may a broker charge the client directly — in which case the broker does not receive commission from the insurer.
No. The commission is paid from the “overhead allowance” portion of the premium, which insurers allocate for operating costs. Engaging a broker does not increase the overall cost of insurance.
Yes. Under the Insurance Law, a broker needs a letter of authority from each client. In practice these are exclusive — they are not issued to multiple brokers for the same case. The authority enables the broker to officially represent the client before insurers.
Brokers bring specialized expertise, experience and market leverage to assess risks accurately, optimize coverage and negotiate better terms. Their know-how and position typically exceed what an individual client can achieve, resulting in improved offers.