This is how an Affiliate Insurance Broker works
Example: Housing and real estate sector  

1. The Affiliated Insurance Broker covers and manages the individual insurance needs of residential construction companies at the insurers with the best price/performance ration. As a broker, it has access to the entire insurance market. 

2. Based on existing agreements the broker receives a commission from the respective insurers for management services rendered at the broker’s own cost. It is part of the external marketing and service costs of the insurer which are fixed costs included in the premium.

3. The residential construction company is invested in the Affiliated Insurance Broker, which is engaged to advise in insurance questions, as a shareholder. 

4. Any annual surplus after rendering an extensive, industry specific management service is distributed to the residential construction company as shareholder income. And to the extent to which the residential housing company has contributed to the corporate success as a shareholder.

5. The engagement of the broker has no direct impact on the insurance agreements between insurer and insured party (residential construction company).