motor insurance brokers, profit margins?

david....

im just wondering i paid 765.00 for my insurance a week back down from 999.50?
im just wondering does anyone know the profit margins brokers make for future reference in bargaining with them?
Thanks

chillywilly

Feck all on motor insurance! That price probably includes a broker fee of around €25 and and then they make around 5% off of the rest. So they probably made around €60/€70

Colonel Sanders

Typically I have seen commission rates of 5-10% in ROI and as high as 15% in the north. If the broker has an exclusive deal with an insurer they might get extra commission as an incentive. The larger brokers often get profit shares from the buisiness they write too

As stated above they might also charge the customer a small fee.

In large commercial cases they might sacrifice some margin in order to retain the business (i.e. take less commission/fee income to lower the customer's premium). Of course this could be the case for a single private car policy but much less likely IMO

Colonel Sanders

It should be noted that the above equates to their income. They need to pay all their costs out of that so no idea what the actual profit margin is