Comparing insurance broker fees is a challenge when the pricing method differs greatly.

So, we’ve made it easy for you to see the real cost of your insurance program.

When you’re clear on price, you can focus on the broker’s expertise and how they protect your business success.

Insurance Broker Fees Breakdown

The table below shows two ways you are charged for brokers fees on an insurance policy.

The Clear Insurance Way versus the Old-Fashioned Way.

Clear Insurance Logo
The Clear Way
The Old-Fashioned Way
Insurer Policy Premium$7,500.00
(No hidden broker
commission included)
$10,000.00
(Including hidden broker
commission of $2,500)
GST$750.00$1,000.00
Stamp Duty
(9% of Premium plus 10% GST)
$742.50$990.00
Adviser / Broker Fee$1,912.50
(25.5% of the insurer
policy premium with
no hidden broker
commission included)
$250.00
GST on Adviser/Broker Fee$191.25$25.00
Total Insurance Policy Cost$11,096.20$12,265.00
Total Adviser/Broker Income$1,912.50$2,750.00
Total Saving $1,168.80

What’s the Old-Fashioned Way for Broker Fees?

It’s the method used by many insurance brokers because they earn commission. There’s no requirement to declare it for commercial insurance products, unless it’s a retail product such as home or motor insurance.

Insurer premiums include 10% to 30% hidden commission which is paid to the insurance broker when placing the policy.

While the percentage varies by policy type; the industry average for commission is 20%.

Unfortunately, for you, when brokers use this method, it also increases the amount of GST and Stamp Duty you pay.

So, when an insurance broker receives commission, their Broker Fees may seem cheaper. However, in real terms, they may be more expensive.

Choose The Clear Insurance Way for Broker Fees.

Clear Insurance works directly for you on a fee-for-service basis and choose not to accept insurer commissions.

For you, that means you pay the insurer premium with no added commission, making the GST and Stamp Duty you pay lower too.

It would be remiss not to say that there are occasions when an insurer requires us to accept commission for invoicing reasons. When that happens, we adjust our fee down so you never pay more broker fees than you should.

We make it clear on your invoice.

Review your insurance program, the Clear Way

You don’t need to wait until renewal time to review your insurance program or seek advice on savings. Contact Clear Insurance today.

Contact Us

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Clear Insurance Pty Ltd. ABN 41 601 916 689. AFSL No. 548953.