how do insurance brokers make money
A: An insurance broker makes money off commissions from selling insurance to individuals or businesses. Most commissions are between 2 and 8% of premiums, depending on state regulations.Brokers sell all types of insurance, including health insurance, homeowner insurance, accident insurance, life insurance and annuities. The broker is supposed to represent his clients' best interests.or this reason, brokers are paid a commission rather than receiving payment from insurance companies, which could create negative incentives that damage trust between the broker and client. A broker has an important responsibility to help people navigate between insurance plans, many of which have subtle differences.