What is Brokerage/Commission?

Brokerage or Commission is the incentive in terms of cash or other perks which an insurance agent earns for every sale or sales made in a particular period. The commission is received by a person acting on part of another person for rendering various services to make the transaction successful. Thus, there are three parties involved namely, the buyer, the seller and the broker/commission agent. It is generally paid as a percentage of premium of the insurance policies which he has sold. This makes the transaction very successful as the concerned person is rewarded in direct proportion to the policies sold by him/her.