Brokers are free to you because insurers pay them commission — typically a percentage of your premium, funded from a price that's generally the same whether you buy direct or through a broker. So the real question isn't cost; it's whether the broker's comparison, underwriting help and claims support are worth having at no extra charge.
- ✓Insurers pay broker commission from a premium that's typically identical to the direct price.
- ✓You generally can't save the commission by going direct — the insurer just keeps it.
- ✓Health insurance brokers must be FCA-authorised; you can check any firm on the register.
Follow the money
When you buy a policy through a broker, the insurer pays the broker a commission — typically a percentage of your annual premium, both for the first year and (at a lower rate) at renewals the broker continues to service. You never see an invoice because you never owe one: the broker's client-facing service is funded entirely from the insurer's side.
The natural objection: 'then the commission must be hidden in my premium — I'll cut out the middleman and save it.' Reasonable instinct, but that's not how UK health insurers price. Distribution costs are built into premiums across the board, and insurers generally quote the same premium direct as through an intermediary — they don't undercut the broker channel that brings them most of their business. Buy direct and the insurer typically keeps the margin; buy through a broker and it funds advice. The price to you is the same either way.
What the commission actually buys you
So the sensible question becomes: what does a whole-of-market broker do for money you'd spend anyway?
- Market comparison. Quotes across every major insurer — Bupa, AXA Health, Aviva, Vitality, WPA, The Exeter and beyond — rather than one insurer's view of itself.
- Underwriting navigation. Advice on moratorium vs full medical underwriting, how your history will be treated, and which insurer handles your situation best.
- Plan design. Matching excess levels, outpatient limits and hospital lists to your budget instead of defaulting to the most expensive tier.
- Renewal work. Rebroking your policy at renewal, when loyal customers otherwise drift into year-on-year increases.
- Claims support. Someone on your side of the table if a claim gets complicated.
Put a free broker to work
The conflicts, stated honestly
Commission-funded advice has built-in tensions, and pretending otherwise would undermine everything above. Here they are.
| The conflict | The honest position |
|---|---|
| Brokers earn more if you buy | True. A broker has no incentive to tell you not to buy at all — read our take on when cover isn't worth it, and decide that question yourself |
| Commission rates can vary by insurer | True in principle. Ask any broker directly whether commission differs across the insurers they recommend — a good one answers plainly |
| Bigger premiums mean bigger commission | True. Counterweight: brokers who oversell lose renewals and referrals, and FCA rules require suitable advice, not maximal advice |
| Renewal commission rewards inertia | Partly true. It also pays the broker to rebroke you at renewal — ask yours what they actually did at your last one |
The regulatory backstop matters here: UK health insurance brokers must be authorised by the Financial Conduct Authority, which imposes suitability, disclosure and fair-treatment obligations. You can check any firm on the FCA register in about thirty seconds, and you should.
How to use a broker well
Treat the broker as free labour with a known bias. Take the whole-of-market comparison, the underwriting advice and the renewal rebroking — that's real value at no extra cost, and it's work most people won't do themselves across six or more insurers. Keep for yourself the decisions where their incentive cuts against you: whether to buy at all, and whether a cheaper plan design — a higher excess, a capped outpatient limit, a narrower hospital list — would serve you fine. And test any broker with one question: 'how are you paid, and does it vary by insurer?' The ones worth using answer in a sentence. Our broker vs direct guide sets out the full comparison — including, since we're a broker, the case for not using one.
Frequently asked questions
Why are health insurance brokers free to use?
Because insurers pay them commission — typically a percentage of your premium — from a price that's generally the same whether you buy direct or through a broker. The client-facing service is funded entirely from the insurer's side, so there's no fee to you.
Do I pay more for health insurance if I use a broker?
Typically no. UK health insurers generally quote the same premium direct as through a broker — they don't undercut their own intermediary channel. Going direct doesn't remove the distribution cost from your premium; it usually just means the insurer keeps it.
How much commission do health insurance brokers earn?
Typically a percentage of your annual premium in year one, with a lower ongoing rate at renewals the broker services. Rates vary by insurer and firm. A good broker will tell you plainly whether commission differs across the insurers they recommend — it's a fair question to ask.
What's the catch with commission-paid health insurance brokers?
The honest conflicts: brokers earn nothing if you don't buy, more if you pay more, and renewal commission can reward inertia. The counterweights are FCA suitability rules, reputational incentives, and your own diligence — decide whether to buy at all yourself, then use the broker's comparison.
Does using a broker slow down getting covered?
No — it usually speeds things up. A whole-of-market broker runs quotes across insurers in one conversation, handles the underwriting questions with you, and submits the application. Most people go from first call to active cover in days, the same timeline as applying direct but with fewer wrong turns.