Net premium deals will become more common
as brokers come under the Financial Services Authority's (FSA) regulation, the British Insurance Brokers' Association (Biba) has
Biba chief executive Mike Williams said net premium and fee-charging had been the preserve of large, sophisticated brokerages, but was likely to become more widespread.
"The way regulation is going, it seems pretty clear complete transparency on brokers' earnings will become the order of the day," he said.
"There will be pressure for the market to move towards net premium and fees."
Williams said this meant brokers would have to convince clients of their worth as professional advisers.
"There will be a need for a move towards showing the added value brokers give to the process," he said.
He said this could be difficult for some small brokers.
"Their clients are not as sophisticated and used to paying fees for the services they get," he said.
Williams said insurers had been reluctant to offer net premium on a broad basis, but most of the large insurers offered it on request.
The St Paul has been offering package policies over £50,000 on a net basis for some time.
General manager for sales, marketing and distribution David Bevan said net premium on high value policies took away the "arbitrary debate about commission".
"At that level, it's more to do with the amount of value the broker's adding," he said.
Bevan said small brokers had been the only ones to complain about the change from commission to net
"Most big commercial brokers are already geared to work on that basis. On large risks it's well established," he said.
"The only real objection we've had has been from commercial brokers with less experience on larger risks."