Commission-free advice versus a traditional broker

Why Dutch damage insurance is different from mortgages and life insurance

In 2013, the Netherlands introduced a ban on commission for complex financial products — mortgages, life insurance and income protection. That ban does not apply to damage insurance. A broker handling home contents, car or legal expenses insurance can still receive commission paid by the insurer out of the premium. That is not automatically a problem, but it means costs are not visible unless you ask.

Commission-free working for damage insurance is a deliberate choice by the firm. It means they agree a separate fee with the client and receive no commission from the insurer. That makes remuneration transparent, but says nothing on its own about advice quality or premium level.

Where the models really differ

A fair comparison looks beyond the monthly premium. Include the advice or service fee, cancellation moments, quality of terms and what happens when a claim is filed.

The incentive question: why remuneration structure matters

A broker receiving ongoing commission for each active policy has a financial interest in keeping that policy running — even if switching would benefit the client. That does not mean commission-paid advisers give poor advice, but it is a reason to actively ask when your package was last reviewed critically.

With commission-free working, the firm earns regardless of which insurer is chosen or how high the premium is. The incentive shifts from keeping policies in place to quality of advice. Yet this is not black and white: a commission-paid firm with strong service practices can outperform a commission-free firm that goes quiet after the first appointment.

When commission-free often makes sense

• You have several damage policies and want to see overlap, expensive add-ons or missing cover in one review.
• You want to know what advice and management cost rather than seeing only a premium figure.
• Your situation has changed — a move, moving in together, a baby, renovation or new car — and you want a full review.
• You have doubts about your current adviser's independence and want a second opinion.
• You want a structured annual check with clearly agreed service, not an adviser who only calls when you do.

When a traditional broker can still fit

A traditional broker is not automatically wrong. If you receive active claims support, your file is updated at every change and premiums are reviewed each year, the model can work well. The real question is whether the commission built into the premium is reasonable for the service you actually receive.

• Ask whether annual review, policy changes and claims support are explicitly included.
• Ask whether the broker compares a genuinely broad market or works with a limited panel.
• Ask what happens if you cancel one policy but keep the others — does service change?
• Ask how quickly you can reach someone when a claim happens and whether the firm handles the insurer on your behalf.
• Ask when your current premiums were last compared against alternatives.

A broker who answers these questions concretely and in writing is more likely to deliver real service for the commission. If answers stay vague, that is a reason to get an independent review.

Claims handling: the difference that matters when things go wrong

The moment when the choice of adviser is most visible is not when taking out a policy but when filing a claim. A good broker — commission-free or not — acts on your behalf with the insurer, checks whether the payout is correct, flags unfair rejections and escalates if needed. A poor one gives you the insurer's claims number and tells you to call yourself.

• Ask whether the firm contacts the insurer themselves during a claim or whether you handle that.
• Ask what happens if the insurer rejects or reduces a claim.
• Ask whether claims handling is included in the fee or billed separately.
• Ask about their experience with claim types that match your risks: fire, theft, water damage, liability.

Compare in four steps

How PolisMoment fits in

PolisMoment does not provide personal advice or broker policies itself. Through the free check, your request goes to one independent, commission-free advice firm. Your details are not sold to multiple parties. If you do not want follow-up contact, it stops after the check.