How insurance is sold shapes what you pay and the advice you receive. Commission, and the duty to act in your interest, are the two things to understand as a buyer.
How distributors are paid
Brokers and agents are paid by commission from insurers, by a fee from you, or both. The model affects the incentive to recommend one product over another. Firms must disclose how they are paid.
The duty to customers
Since the FCA’s commission disclosure rules and the Consumer Duty, distributors must ensure products deliver fair value and that commission does not skew advice. Our explainer on the Consumer Duty covers the standard insurers must meet.
What to check
Ask how your adviser is paid and whether they are whole of market or tied to one insurer. Our guide to complaining explains your options if advice was unsuitable.