Broker Commission &
Fees Explained

Why do you charge admin fees if you're already getting paid Commission? 

If I was in your shoes I’d be asking the same question, why do we need to charge admin fees if we’re already paid commission from the insurers?

In a nutshell, commission is attached to the premium of a policy and can move up or down, whereas administration fees are fixed and provide guaranteed revenue for the business.

Let’s say we work together on a quote over a few days and you decide to go ahead, we will invoice you the total premium plus a small admin fee. Once you arrange payment to us we’ll pay your premium to the insurer minus our admin fee and the commission that applies to that policy. 

But then your circumstances change and you need to cancel the policy a month later. We will organise the pro-rata refund from your insurer to our trust account, and then forward that on to you including the commission component.*

What if you had a claim in that month when the policy was in force and needed our assistance? The fact that you only had that policy with us for a month doesn't really change anything, we'd still support you through that process as part of the service that we offer. 

So we might have provided 1-2 hours of guidance setting up the policy, a few more on assisting you through that claim, and if we relied on commission alone we may only receive $25-$50 of pro-rata commission income for all of that work. 

Admin fees are used alongside commission income to ensure that we can provide amazing customer service throughout the policy period without any additional cost for our time if you need something like a Certificate of Currency or assistance through a claim. 

Admin fees are used alongside commission income to ensure that we can provide amazing customer service throughout the policy period

Including support through any claims at no additional cost to you



In a report prepared by Deloitte for the National Insurance Brokers Association (NIBA) they found Insurance Broking provides many economic benefits, including:

  • Encouraging greater competition in insurance, with the average NIBA broker offering products across 10 different insurers

  • Reducing underinsurance, with 45 per cent of new broker clients being underinsured prior to engaging a broker

  • Using their experience to provide advice and save clients’ and insurers’ time, regarding risk assessment, policy selection or claims.

And in more than half of the cases studied the clients paid the same or less as they were before using an insurance broker! If you’re interested in more of the detail jump over here: The Economic Value of Insurance Broking.

“Yes, insurance brokers are intermediaries.  But they offer real support, and most importantly genuinely valuable advice, in the areas of risk, risk management and risk financing

– something not done by other professionals.”

Dallas Booth, NIBA CEO

I can't tell you how many times I've personally assisted clients to achieve greater policy coverage without increasing their overall premium, so you don't need to be concerned that using an insurance broker will necessarily cost you more than dealing directly with an insurer in the 'direct market'. 

If you could get access to better policy wordings, guidance on your policy coverage to reduce the risk of being underinsured, advocacy when you need to make a claim and regular reviews of your insurance program - why would you want to go it alone? 


At the end of the day we're a professional services business and rely on commission and admin fees to ensure we can deliver quality products and service to you at all times. If you're ready to start working with us we'd love to hear from you and show you just how easy insurance can be! 

Ready to start working with us? 


*There are some brokers who operate differently, but speaking for our business we only charge a small fee on alterations and cancellations to cover our time and absorb the lost commission as a cost of doing business.