Do Insurance Brokers Charge a Fee in New Zealand?

The short answer: usually, no.

In New Zealand, most insurance brokers are paid a commission by the insurer you choose. That commission is built into the policy pricing, whether you use a broker or go directly to an insurance company.

So using a broker typically doesn’t cost you anything extra.

How Insurance Brokers Are Paid

When a policy is put in place, the insurer pays the broker a commission for arranging and managing the cover. That commission:

• Comes from the insurer, not you
• Is already factored into the premium
• Is the same whether you use a broker or go direct
• Is based on the premium you pay

In other words, you’re not paying more because a broker is involved.

Does That Create a Conflict of Interest?

It’s a fair question, and an important one. In New Zealand, insurance brokers are legally required to act in your best interest. That means recommending cover that suits your needs, not the insurer that pays the highest commission. Brokers are also required to justify how and why they recommended certain covers and amounts.

A good broker is also transparent about how they’re paid and focused on building long-term relationships, not making quick sales. If you’re curious about our fees and how we get paid, you can view them on our website here. 

Are There Ever Broker Fees?

Sometimes, yes, but it’s not the norm. A broker might charge a fee if:

• Your situation is particularly complex
• You want advice only, without placing a policy
• You’re seeking very specialised or one-off advice

If a fee applies, it should always be disclosed upfront. No surprises. No awkward invoice later.

So Why Use a Broker If It’s Free?

Because you get:

• Access to multiple insurers, not just one
• Help structuring cover properly
• Someone to handle the admin and negotiations
• Support at claim time
• Ongoing advice as your life changes

You can read more about what we do by clicking here. 

The Bottom Line

Most insurance brokers in New Zealand don’t charge you a fee. They’re paid by the insurer, and the cost is already built into the policy. The current remuneration structure ensures that financial advice remains accessible for everyone. Most people don’t have thousands to spend on hiring an advisor, especially those who need the advice most. We’re here to help people plan for their future without breaking the bank. What you’re really paying for is peace of mind, clarity, and having someone on your side. And that part tends to be worth it.

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