How do Insurance Commissions Work?
Commissions also depend on the quality of the insurer. A high-quality company does not pay as much in commission as one that is in tougher financial straits, because the good company's high ratings make its products easier to sell. (Commission structure is why the low-load and fee-only advisor options were able to gain a foothold in the industry.)
The differences between one company and the next are so minimal that good agents will simply bring you the best available policies; they aren't likely to gouge on commissions if it puts their reputation at risk.
What's good about the commission structure in insurance is that you can easily make side-by-side comparisons to see if one deal works best.
By Chuck Jaffe