What Does Finder’s Fee Mean?
A finder’s fee is an amount of money that is paid to a party for successfully finding or setting up a business deal. In the context of insurance, finder’s fee may be paid to people who help to connect insurance companies with policyholders, or vice versa.
Insuranceopedia Explains Finder’s Fee
Insurance companies benefit from finding the right policyholders. They are, therefore, willing to pay finder’s fees to the agents and brokers who find find insurance applicants and help them sign up for the insurer’s policies. For example, if a person connects an mortgage insurance company with ten recent mortgage borrowers, the mortgage insurance company may pay the intermediary a finder’s fee for helping the discover these people.