We Make Insurance Easy
We Make Insurance Easy
We Make Insurance Easy
Commissions & 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?
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In a nutshell, commission is a percentage of the premium and can move up or down, whereas administration fees are fixed and provide guaranteed revenue for us - remember we're not a massive insurance company, we're a local professional services business.
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If we're arranging a smaller value policy of $100-200 before government charges, the commission might only be $10-$30 so in that case we will need to charge a higher admin fee.
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But for larger policies we might choose not to charge an admin fee if the commission income is high enough.
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The benefit of being a small business is that we can be flexible with this and be client focused in our renumeration rather than profit driven.
The good news is that using an insurance broker won't necessarily cost you more!
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In a report prepared by Deloitte for the National Insurance Brokers Association (NIBA) they found Insurance Broking provides many economic benefits, including:
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Encouraging greater competition in insurance, with the average NIBA broker offering products across 10 different insurers
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Reducing underinsurance, with 45 per cent of new broker clients being underinsured prior to engaging a broker
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Using their experience to provide advice and save clients’ and insurers’ time, regarding risk assessment, policy selection or claims.
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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
Informed Consent Changes
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From 9 July 2025, insurance brokers that provide personal advice to retail clients in relation to general insurance or life risk products must obtain the client's informed consent before receiving a commission in relation to those products.
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This means that before we can arrange cover for you, we need to obtain your informed consent to receive commission on policies such as Home, Landlords and Car Insurance.
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As a result of this we will be offering some of our services on a Fee For Service basis with 0% commission and a fixed fee, if we are offering our services on this basis this will be made clear to you in writing.
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Some products will remain a combination of commission and fees, and other products will remain commission only in line with our practice of being client focused rather than profit driven. In these instances we may require your Informed Consent before we can arrange cover for you.
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If you do not wish to provide consent when requested, we can make arrangements to remove the commission and charge the same value as an equivalent upfront fee, or you can decline our services.
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The easiest solution would have been for us to provide General Advice only and carry on business as usual without this additional consent requirement, but we strongly believe that everyone should be able to access quality advice. So for this reason we are committed to implementing this new practice and appreciate your support and understanding.
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It's not like we walk in to Woolies and ask how much their retail markup is before we fill up our trolleys! But nonetheless we are happy to be transparent about our income and hope that you will see that our recommendations are always in your best interest and not influenced by commission.
