Almost always by commission from the insurer, built into your premium — so the service feels free to you, though the cost sits inside the price either way.
How it works in practice
The standard model for consumer private medical insurance is commission. When a broker places your policy, the insurer pays it a percentage of the premium, and that arrangement continues for as long as the policy runs. You do not hand the broker a separate cheque — the payment flows from the insurer.
That is why brokers can describe their service as free, and to you it broadly is. The important nuance is that commission is funded from the premium, and insurers price distribution costs in whether or not a broker is involved. So a broker rarely makes your cover more expensive than buying the same policy direct would.
Some brokers charge a fee instead of, or on top of, commission — more often on complex individual cases or business schemes than on a straightforward personal policy. Where a fee applies, they have to tell you about it. FCA rules require brokers to be transparent about how they are paid, so you are entitled to ask and to a clear answer.
The practical takeaway is to ask two questions: is the broker paid by commission, a fee, or both, and roughly how much. A good broker answers without hesitation, and the way they respond tells you as much as the numbers do.
Questions to put to the insurer or broker
- Are you paid by commission from the insurer, a fee from me, or both?
- Roughly how much commission does this policy pay you?
- Would a different policy pay you more, and does that affect your recommendation?
Related questions
- Broker or direct: which is the better way to buy private health insurance?
- Can a broker get me cheaper private health insurance than going direct?
- Can a broker help me get private health insurance with a pre-existing condition?
- Can a broker switch my private health insurance to a cheaper insurer?
How this site fits in
This explains how UK private health insurance brokers work in general. Health Insurance UK is not itself a broker and is not FCA-authorised; when you request a quote we introduce you to one selected FCA-authorised broker, which is responsible for any regulated advice, and we may be paid for the introduction. Always check any firm on the FCA Financial Services Register before you act, and remember a broker cannot cover a condition you already have — that is set by underwriting, not by who arranges the policy.
Get a free quote — a specialist broker calls you back, free and with no obligation.
Or see how UK cover compares and the FCA-authorised broker list.