Under applicable laws and common practice across Europe, an insurance broker does not represent an additional cost to the client — the policyholder. The broker’s commission is paid by the insurer issuing the policy, not by the client. This commission is covered from the “overhead allowance” portion of the premium and does not affect the price the client pays.
In practice, this model benefits all market participants over the long term — clients receive expert support without extra cost, while insurers achieve more efficient and often less expensive distribution of their products.
Although the broker’s revenue is paid by insurers, the broker works exclusively in the client’s interest, representing the client’s needs and protecting their position in negotiations with insurers. Unlike agents or tied intermediaries (e.g., leasing companies), the broker is independent of any particular insurer — as stipulated by law.
By engaging a broker, clients gain:
- Expert advice and support through all stages of the insurance process
- Optimization of coverage and premium
- Clear identification of the risks that could impact assets or operations
- Reduced need for internal resources to manage insurance