Broker commission in damage insurance

Why damage insurance commission works differently from mortgages

Since 2013, the Netherlands has had a commission ban for complex financial products: mortgages, life insurance and income protection. That ban does not apply to damage insurance. A broker handling home contents, car, liability or legal expenses insurance may still receive commission from the insurer — paid out of the premium you pay.

This is allowed as long as the broker is transparent about the remuneration form on request. It also means commission on damage insurance can vary: it depends on the product type, the insurer and the agreement between the firm and the insurer. That makes comparison harder but not impossible if you ask the right questions.

How commission in damage insurance works in practice

Always ask for a written breakdown. A registered intermediary is required to be transparent about the remuneration form on request. If the firm refuses or stays vague, that is informative in itself.

When commission becomes a problem

Commission becomes a problem when the remuneration is out of proportion to the service you receive. The following situations are a signal that something may be wrong:

• You do not know what you pay for and your package has not been actively reviewed in years.
• More expensive policies are consistently chosen without a clear cover reason.
• Package discount hides that some individual policies are expensive compared to alternatives.
• Claims support is promised in the quote, but in practice you are given the insurer's claims number and told to call yourself.
• Cancelling one policy changes the service offered for the remaining policies.
• You never receive proactive contact when an insurer changes its terms for better or worse.

How high is commission on damage insurance?

Commission percentages on damage insurance vary by product type and insurer. There are no fixed statutory rates. In practice, remuneration can differ significantly depending on the product, the firm's volume and the agreement with the insurer. Ask for a concrete amount, not only a percentage.

Calculate it yourself: if you pay 120 euros per year for a contents policy and the firm receives 15% commission, that is 18 euros per year. Over five years that is 90 euros for the same policy — without a single letter, call or claim being filed. That is not automatically unreasonable if the service was there. But it is worth finding out.

Review your current situation in four steps

Common mistakes when assessing commission

• Looking only at the premium without knowing which service is built into it.
• Assuming commission-free automatically means cheaper — the advice fee can be equally high or higher.
• Treating package discount as proof of good value when the base price may be above market.
• Forgetting that each policy may have a different cancellation date, which means switching requires timing.

Free check on price and cover

Through PolisMoment, one independent, commission-free advice firm can review your damage insurance. PolisMoment does not provide personal advice or broker policies; your request is not resold to multiple parties.