There are two typical scenarios when renewing insurance as set out above. The first of these is shown above in Scenario 1 – Commission. This is based on a commission structure which can be up to 20% of the base premium. A broker fee is also charged on top of this amount, which gives the Total Payable.
Scenario 2 – Broker Fee. This is based on a broker only fee, but often incorporates the relevant commission that would otherwise be included in the base premium. In this circumstance, the commission amount included in the broker fee is then remitted to the Owners Corporation Manager.