Brokerage
The term brokerage can have different meanings:
Brokerage can indicate insurance accounts handled by one agent on behalf of another agent.
Brokerage is mostly used to describe the remuneration earned by a broker. When a broker places a client’s business with an insurance company, the company will pay the broker commission for the business. Some brokers will also charge their client a fee for his service, usually referred to as a consulting or policy fee.
In most cases the commission paid to the broker is calculated as a percentage of the sum involved in the contract but it may also be a fixed tariff, depending on the agreement between the insurance company and the broker.
Brokers often specialize in certain aspects of the insurance market and if you require this type of insurance it is best to make use of the service of a broker. An example in the car insurance market will be a broker specializing in insuring vintage cars at agreed value instead of market value.
Brokerage firm is the name given to the business of one or more insurance brokers, often specialist businesses in certain market niches. Details of individual brokers or brokerage firms can be found by conducting an internet search.