How Much Commission Does an Insurance Agent Get in Toronto?
Insurance Education
Published by BrokerUnion Insurance Editorial Team | RIBO-Licensed Ontario Insurance Broker | October 25, 2026
There's no single commission rate for every insurance agent or broker in Toronto. Commission depends on the insurer, the product, the line of business and the brokerage's agreements. As a real-world example, BrokerUnion, a RIBO-licensed Ontario brokerage serving the Greater Toronto Area, discloses that insurers pay it a base commission of typically 5% to 20% of the premium on personal lines and up to 25% on commercial lines. That commission is paid by the insurer, and it's brokerage revenue, not an individual broker's take-home pay.
So if you're asking how much commission an insurance agent gets in Toronto, the honest answer is "it varies, and in Ontario your broker has to tell you." This guide explains who pays, whether it affects your premium, how agents and brokers differ, and what RIBO requires brokers to disclose.
About the author: BrokerUnion is an independent, RIBO-licensed insurance brokerage headquartered in Pickering, with offices in Pickering, Barrie, Mississauga, Whitby, Sudbury and Kitchener. We act on behalf of clients, not insurers, and publish our compensation disclosures online.
How much commission does an insurance agent get in Toronto?
Insurance commission in Toronto and across Ontario is usually a percentage of the policy premium, paid by the insurer to the brokerage or agency that placed the policy. The percentage varies by:
- Insurer: each company sets its own commission schedule
- Product: auto, home and commercial lines are often paid differently
- Personal vs commercial lines
- New business vs renewal, depending on the insurer and contract
- The brokerage's agreements with each insurer
Not every insurance professional earns commission. Some are salaried employees of an insurer or brokerage, some earn salary plus commission or bonuses, and some are paid on commission alone.
BrokerUnion's disclosed commission ranges
| Insurance type | Typical BrokerUnion base commission disclosure |
|---|---|
| Personal lines (auto, home, condo, tenant) | 5% to 20% |
| Commercial lines (business, commercial auto, fleet) | Up to 25% |
These are BrokerUnion's disclosed ranges from its mandatory disclosures, not guaranteed or Ontario-wide insurance commission rates. Other brokerages and agencies may have different arrangements, and the rate on any one policy depends on the insurer and product.
Example: a personal auto or home policy
If a policy premium is $2,000 and the applicable commission is 10%, the brokerage's gross commission would be $200.
This is an illustration only, not a quote or a guaranteed commission rate.
Example: a commercial policy
If a small business's commercial package premium is $8,000 and the applicable commission is 15%, the brokerage's gross commission would be $1,200.
Again, an illustration only. "Up to 25%" is the top of BrokerUnion's disclosed commercial range; many commercial policies pay less, and the actual rate depends on the insurer and product.
In both examples, the $200 or $1,200 is gross revenue to the brokerage. It has to cover brokers' salaries, licensing, office costs, technology, errors and omissions insurance and the time spent servicing the policy through the year and at claim time.
Who pays an insurance broker's commission?
The insurer does. When you buy a policy through a broker, you pay the premium, and the insurer pays the brokerage its commission out of that transaction. In BrokerUnion's words, it is paid by the insurer through a base commission on the premium you pay. You don't usually receive a separate invoice for the broker's commission.
Do insurance brokers charge customers a fee?
Sometimes, but never without telling you first. RIBO's rules say a broker shall not charge or accept any fee that isn't fully disclosed before the service is rendered, or that is unconscionably out of proportion to the service. Examples that may apply include a broker service fee, a policy fee or a premium financing fee. BrokerUnion states that any such fee will be disclosed to you before the service is rendered.
Does insurance broker commission increase your premium?
Not in the way many people assume. Your premium is calculated by the insurer from underwriting and rating factors: your driving record or claims history, the vehicle or property, location, coverage limits and deductibles. In Ontario auto insurance, insurers' rates also have to be approved by FSRA. The broker doesn't add a commission on top of that premium.
Insurers do build distribution costs into their overall pricing, whether they sell through brokers, their own agents or direct channels. That's why using a broker isn't automatically cheaper or more expensive than buying direct. The price you're offered depends on the insurer and your profile, which is why comparing equivalent quotes matters more than the channel.
Does a higher commission mean a higher insurance premium?
Not directly. For a given policy, the premium comes from the insurer's rates for your risk, not from the broker's commission percentage. Commission matters for a different reason: it's a potential conflict of interest, which is exactly why Ontario requires brokers to disclose it.
Insurance agent vs insurance broker: who gets paid and how?
| Insurance agent | Insurance broker | |
|---|---|---|
| Licensed by | FSRA | RIBO (for general insurance) |
| Represents | Generally the insurer that sponsors them | The client |
| Who pays them | The insurer or agency, by salary, commission or both | The brokerage is paid commission by insurers; the individual broker is paid by the brokerage |
| Insurers available | Usually one | Several, depending on the brokerage's agreements |
| Disclosure | Follows FSRA and insurer requirements | Must follow RIBO's mandatory disclosure rules |
An insurance agent licensed by FSRA typically can only arrange coverage with a single insurance company. Some agents are employees on salary; others work on commission through an insurer's agency system. A broker works for the client and can compare several insurers, but brokers don't always earn more than agents, and neither model is automatically better for every consumer.
What are contingent profit commissions?
Contingent profit commissions are extra payments an insurer may make to a brokerage if the brokerage's whole book of business with that insurer meets targets such as profitability, growth or volume. In simple terms, it's a possible year-end bonus tied to the brokerage's overall results with an insurer. RIBO notes these are not guaranteed and depend on the broker's total book, not individual policies. Even so, brokers must disclose the possibility of receiving them, because they could influence which insurer a brokerage favours.
Do brokers get paid commission on insurance renewals?
Often, yes. Many insurers pay commission on renewal premiums as well as new business, which helps fund the ongoing service a broker provides through the year, such as policy changes, renewal reviews and claims support. Renewal rates and terms depend on the insurer, product and brokerage contract. The same generally applies to agents, depending on their compensation arrangement.
How RIBO commission disclosure works in Ontario
Ontario brokers can't keep their compensation quiet. Under RIBO's Mandatory Disclosures guidance, in force since October 1, 2024, brokers must tell clients about key matters before the client agrees to buy, and no later than the time of quote.
What must a broker disclose?
- Duty of care: a copy of, or link to, the CISRO Principles of Conduct for Insurance Intermediaries and RIBO's Fact Sheet About Your Registered Insurance Broker
- Compensation and commissions: the forms of compensation the broker and brokerage are entitled to, including contingent commissions, with a reference to the brokerage's statement of compensation
- Third-party financial interests: whether an insurer or related company has a financial interest in the brokerage, with no minimum threshold
- Sales incentives: whether the broker receives incentives, such as trips or gifts, for placing the policy
- Other relevant disclosures: for example, an exclusive arrangement with a single insurer, a network affiliation, premium financing arrangements, placing risk with an unlicensed insurer, or referral fees
When and how must it be disclosed?
RIBO expects disclosure no later than the time of quote, a written summary at binding that is specifically drawn to the client's attention, and disclosure of any new conflicts at renewal. Brokerages must keep records, such as notes, emails or call recordings, showing they made the disclosures. RIBO treats disclosure that is vague or buried in a large package of documents as non-compliant.
Why commission disclosure exists
Commission is a potential conflict of interest: a broker could, in theory, favour the insurer that pays more. Disclosure lets you see that possibility and ask questions before you decide. RIBO's guidance notes that its expectations were clarified after inconsistencies were found in how disclosures were being provided.
How BrokerUnion handles disclosure
BrokerUnion publishes its mandatory disclosures online, including its base commission ranges, the possibility of contingent profit commissions, its ownership position (no insurer owns BrokerUnion, and it holds no ownership interest in any insurer, premium finance company or MGA), and how it handles premium financing and referral fees. The same disclosures are provided in writing at quote, at binding and at each renewal.
How much does an insurance broker actually make?
It's important to separate five different things that often get mixed up:
| Term | What it means |
|---|---|
| Brokerage commission revenue | What insurers pay the brokerage for placing policies |
| Producer compensation | What a brokerage pays a broker who brings in and manages clients, often salary plus commission or bonus |
| Employee salary | Fixed pay for a broker or customer service representative employed by the brokerage |
| Contingent commissions | Possible extra payments to the brokerage based on its overall book with an insurer |
| Service or policy fees | Separate fees charged to a client, only if disclosed before the service |
A 10% commission on your policy doesn't mean your broker personally earns 10% of your premium. That commission goes to the brokerage, which pays salaries and operating costs. How much an individual insurance broker in Toronto or elsewhere in Ontario takes home depends on their role, licence level, experience, book of business and employment agreement. There's no single insurance broker salary or insurance agent salary that applies across Toronto, and we don't publish individual broker earnings.
How can I find out how much commission my broker receives?
Ask. Ontario brokers must disclose the forms of compensation they receive, and you can ask for more detail on your specific policy. Useful questions include:
- How is your brokerage paid on this policy?
- Could you receive contingent commissions or incentives from this insurer?
- Are there any service, policy or financing fees?
- Which insurers did you approach, and why are you recommending this one?
If you're comparing brokers, BrokerUnion's guide on how to choose an insurance broker in Ontario covers other questions to ask.
Frequently asked questions
How much commission do insurance brokers get in Ontario?
It varies by insurer, product and brokerage. As one disclosed example, BrokerUnion receives a base commission typically between 5% and 20% on personal lines and up to 25% on commercial lines. These aren't Ontario-wide rates.
What percentage do insurance companies pay brokers?
Insurers set their own commission schedules by product and line of business, so there's no single percentage. Your broker must disclose the forms of compensation they receive before you buy.
What is the average insurance broker commission in Ontario?
There's no authoritative public average for Ontario. Rates depend on each insurer's agreements with each brokerage, which is why RIBO requires brokers to disclose their own compensation instead.
How much commission do auto and home insurance brokers make?
Auto and home are personal lines. At BrokerUnion, the disclosed base commission on personal lines is typically 5% to 20% of the premium, depending on the insurer and product. That's brokerage revenue, not a broker's personal income.
How much do commercial insurance brokers make?
Commercial lines often have different commission structures. BrokerUnion discloses base commission of up to 25% on commercial lines, and the actual rate depends on the insurer and policy. Some commercial placements may also involve disclosed service fees.
Is an insurance broker paid by the customer or the insurer?
The brokerage's commission is paid by the insurer. A customer only pays a separate broker fee if one is disclosed and agreed before the service is provided.
Does using an insurance broker cost more?
Not necessarily. Premiums come from insurers' rates for your risk, and a broker can compare several insurers. Whether a broker or a direct insurer offers the better price depends on your profile and the coverage.
Are insurance broker commissions disclosed in Ontario?
Yes. Under RIBO's mandatory disclosure guidance, brokers must disclose the forms of compensation they and their brokerage are entitled to, including contingent commissions, no later than the time of quote.
Are insurance commissions regulated in Ontario?
Commission rates themselves are set between insurers and brokerages, but disclosure is regulated. RIBO requires brokers to disclose compensation, conflicts and fees, and prohibits undisclosed or unconscionable fees.
Can an insurance broker charge a separate fee?
Yes, but only if the fee and its basis are fully disclosed before the service is provided. RIBO rules prohibit undisclosed fees.
Talk to a BrokerUnion broker
Want to understand your insurance options and how your broker is compensated? Speak with a licensed BrokerUnion broker or request a quote. We'll walk you through our disclosures before you buy, and compare options from the insurers we work with for your auto, home or business insurance.
- Request a quote: get an insurance quote
- Call a broker: (905) 492-7070
- Review first: read BrokerUnion's mandatory disclosures before purchasing or renewing coverage
- More answers: see our FAQ or explore all insurance products
About BrokerUnion
BrokerUnion Insurance Inc. is an independent, RIBO-licensed insurance brokerage headquartered in Pickering, Ontario, serving clients across Toronto and Ontario from offices in Pickering, Barrie, Mississauga, Whitby, Sudbury and Kitchener. No insurer owns BrokerUnion. Learn more about BrokerUnion.
This guide was written by the BrokerUnion Insurance Editorial Team using BrokerUnion's published disclosures and RIBO guidance. It does not report any individual broker's earnings or any insurer-specific commission rate.
Commission rates, compensation structures, fees, eligibility and policy terms vary by insurer, product and brokerage. Always review the applicable disclosure provided before purchasing or renewing coverage.