Not all insurance brokers are paid the same way — and how they’re paid can shape the advice you get.
The two main models are commission-based and fixed-fee. Here’s how they work — and which one might be better for your business.
Commission Brokers
Most brokers earn 20–30% commission from the insurer.
Pros:
- Familiar model
- Costs (other than the premium) are hidden, so may feel painless
Cons:
- Bigger premiums = more commission
- Less incentive to recommend cost-saving options
- Commissions usually not disclosed
Fixed-Fee Brokers
You pay a flat, agreed fee for service — not tied to your premium.
Pros:
- Transparent pricing
- Broker is financially neutral
- Incentive to reduce your premium
Cons:
- You see the fee that is normally hidden
- Way less common in the market
What Luma Offers
You choose:
Commission Model
We disclose our earnings fully, upfront
Fixed-Fee Advice
You pay us directly. No hidden commissions. No conflicts
Either way, we work for you — not the insurer.
Not sure which model fits your business?