15th May 2024

The British Insurance Brokers’ Association (BIBA) has launched a guide helping to demystify the commission model.

The new guide, launched today aims to help consumers and businesses understand the benefits to them of the commission model, which has been used successfully for centuries. Further, it will help dispel suggestions that commissions should be removed or capped.

Alastair Blundell, BIBA’s Head of General Insurance, says: “We created this publication because we think it is important to give our members guidance on explaining the advantages of the commission model and what it represents in terms of the work brokers do for customers during the life of their policy.”

The new guide explains in detail the potential harm that could arise from abandoning the commission model including the removal of access to free advice for customers at point of sale based on the impact the Retail Distribution Review in 2012 had on access to independent financial advisors.

It highlights that the commission model allows brokers to help customers of all sizes regardless of an individual customer’s contribution, via commission earned to brokers’ overheads and expenses and explains how it benefits insurers through saving in product distribution.

Graeme Trudgill BIBA CEO concludes: “Commission payments have been under the spotlight, but we wanted to highlight the significant advantages to both customers and the insurance market that this long standing practice brings.  In particular, the fact that people approaching an insurance broker who is paid by commission receive free advice without any obligation to buy will help anyone to find a way to increase their financial resilience through insurance.”

The guide is available to BIBA members online.


Notes to editors

  1. Contact us for a private copy of the guide.
  2. For further information please contact:

BIBA press office:
Pam Quinn, Head of Communications
07562 616686
[email protected]

Leighann Forsyth, Deputy Head of Communications
07917 738727
[email protected]

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  1. About the British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes around 1800 regulated firms, employing more than 100,000 people. General insurance brokers contribute 1% of GDP to the UK economy; they arrange 77% of all general insurance with a premium totalling £105.5bn and 94% of all commercial insurance business. Insurance brokers put their customers’ interests first, providing advice, access to suitable insurance protection and risk management.

BIBA receives hundreds of thousands of enquiries per year to its Find Insurance Services, online and via the telephone, which are directed to insurance broking firms.

BIBA is the voice of the sector advising members, Government, regulators, consumer bodies and other stakeholders on key insurance issues.




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