In the context of Jacqui's payment, what is the role of commission in her profession as an insurance broker?

The role of commission in Jacqui's profession as an insurance broker is fundamentally linked to the premiums charged by insurers. When brokers like Jacqui place insurance for clients, they often earn a commission based on a percentage of the premium paid by those clients to the insurers. This commission serves as the primary source of income for brokers and incentivizes them to find suitable policies that meet the needs of their clients while considering the coverage offered by various insurance companies.

This commission structure is designed to align the interests of the broker with those of the client and the insurer, encouraging brokers to seek the best possible terms for their clients. The reliance on premiums rather than direct payments from clients or claim settlements illustrates the significance of the broker's role in facilitating the purchase of insurance rather than managing claims post-purchase. Additionally, commission structures can be variable, reflecting the differences in insurer rates, thereby highlighting the importance of premium levels in determining a broker's earnings.