Do Insurance brokers set their own (over) pricing?

[MJ]

I am thinking of getting catastrophic health insurance for my wife and contacted an insurance broker given to me by a neighbor. They emailed me the specs on a short term policy for $230/month. When I went online to further research the company, I saw what appeared to be the same policy for $162. Did the broker make a mistake or do they charge whatever they can (their hefty commission) over the actual monthly charge, in partnership with the insurance company?

[MRG]

Quote:

Originally Posted by MJ I am thinking of getting catastrophic health insurance for my wife and contacted an insurance broker given to me by a neighbor. They emailed me the specs on a short term policy for $230/month. When I went online to further research the company, I saw what appeared to be the same policy for $162. Did the broker make a mistake or do they charge whatever they can (their hefty commission) over the actual monthly charge, in partnership with the insurance company?

I had a discrepancy because I used 12/1/17 instead of 1/1/18.

No I don't think they adjust prices.

[MJ]

Quote:

Originally Posted by MRG I had a discrepancy because I used 12/1/17 instead of 1/1/18. No I don't think they adjust prices.

I don't believe this applied to me since we discussed having the insurance start 01/01/2018 and I also used that date on the website.
Also his price is more than 40% higher.

[Sunset]

Some insurance brokers charge separately for their service.
I see it on my insurance bill when they sent me the wrong one via email.
It listed the ins company cost, plus their cost, then the tax.

Their fee was 11% on a Property insurance (which was hard to find anyone to insure it, as I had already tried).
The next year, the bill was not broken out.

[Gotadimple]

Usually an agent's commission is built into the rates, and the ins co issues a check to the agent once the policy commences. Brokers, however, are different in that they don't have a standard contract with a commission schedule, and they are a buyer's rep.

"An agent represents one or more insurance companies. He or she acts as an extension of the insurer. A broker, on the other hand, represents the insurance buyer." From https://www.thebalance.com/agents-ve...e-money-462383

- Rita

[mickeyd]

Quote:

Did the broker make a mistake or do they charge whatever they can (their hefty commission) over the actual monthly charge, in partnership with the insurance company?

Possibly. Brokers add another level of cost to any product and seldom, if ever, work for free. Someone has to pay for that corner office and that Lexus in the reserved place in the parking lot.