Hello,
I have a question regarding insurance brokers, sorry if it's silly, I am still new in this domain and really interested in knowing more as I am starting my internship in an insurance company.
I am wondering, can insurance brokers compete with each other by offering a lower premium? let's say the car insurance costs $1,000/year, and the broker earns a 20% commission. For example, can one broker offer the same plan for $900 so their revenue will be $100 instead of $200, but at the same time they can attract more customers? Or all the brokers should offer the same premium?
I know the commission could even differ from a broker to another, company to another, and country to another. But I am just asking in general, are such things common with insurance brokers to compete?
I have a question regarding insurance brokers, sorry if it's silly, I am still new in this domain and really interested in knowing more as I am starting my internship in an insurance company.
I am wondering, can insurance brokers compete with each other by offering a lower premium? let's say the car insurance costs $1,000/year, and the broker earns a 20% commission. For example, can one broker offer the same plan for $900 so their revenue will be $100 instead of $200, but at the same time they can attract more customers? Or all the brokers should offer the same premium?
I know the commission could even differ from a broker to another, company to another, and country to another. But I am just asking in general, are such things common with insurance brokers to compete?