How ‘Fee Only’ Works

Frank Risk Management works on a fee-only basis. Unlike other brokers, we do not accept commission from insurers.

Almost every insurance broker in New Zealand works on an undisclosed commission basis. The greater the premium, the greater their income - regardless of the amount of work involved. Where’s the motivation to reduce your premiums in this process? Also, other brokers sometimes charge you a hidden fee in addition to the commission they receive from the insurer.

Here’s an example that compares our premium calculation to most other brokers.

Both of these examples take the same amount of time and resource to insure. In the ‘Commercial building (B)’ example, because the other broker is being paid a percentage of the gross premium, their income doubles. If the insurer then puts their premium up this also increases the brokers’ income - there is a clear conflict of interest.