An insurance brokers insurance broker earns money by selling insurance to corporations or individuals. They make their money by collecting insurance fees from the buyer and passing them on to the insurance companies that they represent. Most brokers earn between 2 to 8 percent of each premium paid on a policy sold to an individual or corporate customer. A qualified insurance broker knows the customer’s personal situation, wants and needs, to get them the right insurance coverage in their budget. As a result, a broker’s commission is high.The broker’s commission is determined by the cost of coverage provided by the insurance company’s market share. If the insured has a large market share, a large number of insurance policies and/or a good knowledge of the insurance industry, the broker’s commission will be greater than for a company with a smaller market share and fewer customers. A business insurance broker can work in the field of private practice or as an agent of a larger insurance company. A broker’s commission is typically higher when working with a large corporation and lower when working with a smaller business. The reason for this difference is that a large corporation has the means of paying large commission to a broker.There are also discounts available when purchasing insurance through a broker, some of which are included in the rate for the commission. Discounts may apply if you are purchasing through a broker rather than buying from an insurer directly. However, many insurers also offer discount incentives when a person purchases insurance through an agent. Some brokers can provide discounts to their own clients, while others must sell policies through third-party brokers who charge a fee for their service.