A zero-commission insurance policy is a type of insurance that is sold directly to consumers without the involvement of a commissioned agent or broker. With a zero-commission policy, the insurer saves money on agent commissions and passes the savings on to the policyholder in the form of lower premiums.
In the traditional insurance model, agents or brokers receive a commission from the insurance company for selling policies to consumers. This commission is typically a percentage of the policy premium and can range from 2% to 15% or more. However, with a zero-commission policy, there are no agent commissions, and the policy is sold directly to the consumer by the insurance company.
Zero-commission insurance policies are becoming increasingly popular in the digital age as more consumers feel comfortable buying insurance online and through mobile apps. By eliminating the need for agents, insurance companies can offer policies at a lower cost, making insurance more accessible and affordable for consumers.
