Okuzeka
Insurance vocabulary · Brokers, Agents & Distribution

Commission

Meaning in insurance, with examples

/kəˈmɪʃən/nounCore term

In insurance, commission means: A payment, usually a percentage of the premium, that an insurance company pays to an agent or broker for selling a policy.

In Turkish: komisyon, aracılık komisyonu

How it is used

Agents earn or receive commission, and insurers set commission rates for each product. In many countries, rules require commission to be disclosed to customers. In reinsurance, the reinsurer pays a 'ceding commission' to the insurer.

Example sentences

  1. The agent earns a 15 percent commission on every new car policy.

  2. Commission rates for life products are higher in the first year.

Common collocations

  • earn commission
  • commission rate
  • ceding commission
  • commission income
  • insurance agentA person or business that sells policies on behalf of one or more insurance companies and earns a commission on each sale.
  • brokerAn independent intermediary who acts for the customer, compares offers from different insurance companies and helps arrange the most suitable policy.
  • intermediaryA person or firm, such as an agent or broker, that stands between customers and insurance companies and arranges policies.
  • bancassuranceThe sale of insurance products through banks, usually to the bank's own customers at branches or through digital banking.

This word in other fields

The same English word can have a different meaning in another field:

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This page explains English vocabulary for learners. It is not financial advice.