At Insurance1 Broking, we earn money from placing your insurance in two ways:
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Firstly, commission paid from the insurer.
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Secondly, the fees added to your policy paid for by the customer.
We believe it is important to be transparent with our customers about how much we earn when placing insurance on their behalf and you can ask us at any time during your relationship with us to clarify these amounts.
To operate as an independent insurance broker in the UK, we need to maintain a certain level of income to ensure that we can pay not just for our staff (including training and to reward for their expertise), all equipment, office space and regular business overheads, but we must also ensure that we can pay regulatory fees to the Financial Conduct Authority.
Charges
If your make a change to your policy, or cancel it completely, you may reduce the cost of your annual insurance and receive a refund from the insurer. In these circumstances, Insurance1 Broking charges our minimum fee of £45 plus a loss of commission.
Loss of commission refers to the commission that we, as an insurance broker, would have earned from the insurer if the policy had continued for its full duration, at the price originally quoted.
How we ensure our charges are fair
At Insurance1 Broking, we aim to ensure that our fee’s and charges are fair to all customers. We feel that the tiered approach we have created is the fairest way to earn money for our business. By utilising a tiered approach we ensure that we do not levy large charges on customers with smaller requirements plus, by looking at our income as a margin earned from the insurer and customer, we are not earning all of income from the customers which we feel is fairer.
We undertake a review of our competitors fees at least once every 12 months to measure where our fees are in line with the wider broking market. If we feel that our fees are too high, we adjust them accordingly to ensure that we do not disadvantage our customers.
Other ways we make money
At Insurance1 Broking, we also receive commission, expressed as a percentage of your loan, from the premium finance provider used to fund your policy.
If you have any questions about our fee structure, please contact us and we will be happy to discuss it further, and explain how it works in more detail.
Last updated: 21st August 2024
How we calculate our charges
We charge a minimum of £45 for new business, renewal, changes to your policy mid-term and at cancellation.
We aim to make between 14 and 25% margin on all products we place. This is tiered based on the premium of the product sold. The table shows the margin we wish to make on each premium bracket.
Our margin is the sum of the commission paid from the insurer, plus our fee.