Delegance bets on a flat 5% broker fee in place of commission

Delegance Brokerage, a New York commercial insurance broker, charges businesses a flat, disclosed 5% fee in place of a commission and says the model cuts their total insurance costs by 10% to 20% on a typical placement. It announced $3.1m of pre-seed funding led by Grit Capital Partners on 20 October.

The savings figures are the company's own. Its funding release compares the 5% fee with commissions it says typically range from 15% to 25%. Its website, checked on 2 November, uses a range of 12% to 18%, and its worked example assumes the whole difference reaches the buyer: on a $100,000 premium, a 15% commission of $15,000 against a $5,000 fee. The site describes the 5% both as a "service fee" and as a commission.

Software does much of the servicing. An AI agent called Orin answers coverage questions and customers can request certificates and endorsements online. Delegance says licensed brokers remain responsible for complex placements, claims and coverage decisions, and that specialty and excess risks go to other markets through wholesale partners.

The company says it is licensed in 51 jurisdictions, holds direct appointments with 25 carriers including Chubb, Travelers and The Hartford, and has more than $26m of premium commitments for 2026.

Correction, 2 November 2026: an earlier version of this story stated the 15% to 25% commission range in the standfirst without attributing it to Delegance. The story now attributes the range and the savings claim to the company and adds the different figures on its website.

Related coverage: AI insurance broker i23 raises £4.9m seed round from UK investors; Bind AI launches with $10m for quote-to-bind software used by brokers.

Sources

• Delegance Brokerage, funding release (PR Newswire), 20 Oct 2026
• Delegance Brokerage website, FAQ, checked 2 Nov 2026

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