Definition

An external company that manages claims and benefits on behalf of an insurer. They help streamline the process and keep everything running smoothly.

What to consider

  • Understand how commissions are calculated.
  • Compare fees among different brokers.
  • Ensure transparency in commission structures.

Real world scenarios

  • An insurance broker earned a commission for arranging a new corporate policy.
  • A small business owner reviewed the brokerage commission when comparing insurance options.
  • An individual considered the cost of brokerage commissions as part of overall insurance expenses.

Related terms

Insurance & Financial Protection