The Alliance for Insurance Reform criticizes the commission structure used by insurance brokers, claiming it unfairly rewards brokers based on the premiums charged to consumers. They argue that higher premiums lead to higher broker commissions, which should be reevaluated. This concern was expressed in a submission to the Department of Finance during public consultations for an insurance reform action plan. Despite rising insurance costs, Brokers Ireland counters that there is no substantial evidence supporting claims of increasing commission proportions, asserting that brokers are mandated to disclose fees transparently to consumers.
Many brokers now charge a fee based on a percentage of the cost of the policy. This is inherently unfair to consumers as the 'worse' the premium they secure for them, the more money they will make.
The claim that brokerage charges account for 'an increasing proportion of the overall cost of insurance' lacks a clear evidential basis, according to Brokers Ireland.
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