No. The insurance company will pay commission to the
broker.
For business carried out via the Internet, brokers get paid
commission by the Life Insurance Company. Commission is the most cost
effective solution for you, the client, as there is no VAT charged on
commission. If you were charged a fee, the broker would have to add on
VAT.
The Financial Services Authority generally prefers the idea
of fees rather than commission but acknowledges that in some situations,
like the Internet, this is not practical.
All Insurance Brokers, including those operating on the
Internet, will be regulated by the Financial Services Authority by early
2005.