How do insurance brokers make money?

1. What is an Independent Insurance Broker? -All About An Insurance Broker

2. Insurance Brokers • They do not represent carriers, their duty lies towards their customers • They don’t need appointments and can work with multiple carriers • They can provide diverse options to their clients

3. Insurance agents • They represent their carriers and their duty lies towards them • They are confined to their carriers, and those listed in their carriers portfolio • They can only sell the products provided by their carriers. Lacking diverse options for their clients

4. A little more on an insurance broker

5. The tough side of being a broker • Insurance brokers must be knowledgeable and quick with calculations • insurance brokers must remain constantly updated and be sure to not miss out on deals • However, insurance brokers lack the ability to close deals or complete the sales process. • In-order to achieve this, brokers must hand it over to an agent, or in some cases, ask the clients to do it themselves

6. How do brokers make money? • Brokers earn money by collecting broker’s fees and charging commissions • When a client accepts a quote from a company and has completed the purchase, brokers then receive a commission from the insurer • Commissions vary from state to state, and are based on the amount of annual premiums sold to clients • Brokers also charge extra administrative fees to execute transactions