Commission Disclosure Statement
Information about our compensation structure and how we conduct business.
Thank you for your business. As your Insurance Broker, we purchase insurance products and services on your behalf that are available, affordable, and understandable.
Our role is to provide you with the best insurance value that combines coverage, service and price. We also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance and claims support. When any issue arises regarding your insurance coverage, we are your advocates, using our professional experience to best represent your individual interest.
As a brokerage we are compensated in a variety of ways including commission and contingency amounts paid by insurance companies and in some cases fees paid by clients or other third parties. A breakdown of the different compensation methods can be found below.
Commission Income: Compensation from commission is part of your insurance premium and is paid to the brokerage by the insurance company. We have separate commission agreements with each insurance company that vary by business line. Commission is based on a percentage of the premium you pay. For a breakdown of the companies we represent and the range of compensation for each please view this list.
Contingency Income: In order that we maintain strong relationships with our contracted insurance companies we work with them to place business that best fits their target niches. Some insurance companies provide an incentive through profit sharing arrangements if we achieve certain, retention, growth and overall portfolio profitability targets. The insurance companies with an asterisk beside their name have these arrangements in place with our office. These contingent bonuses are never guaranteed and do not influence where we place our clientsâ€™ business. This type of income is typically held at the company level and individual brokers are rarely compensated directly for the contingent income we receive. Insurers that pay contingent income to NFP Canada Corp. are noted in the commission income breakdown above.
Fees paid by clients: For complex business insurance programs a fee may be negotiated the placement of insurance coverage and additional services or products. These fees are typically presented in a proposal and approved in advance of binding coverage. On occasion we may receive both commissions and client-paid fees for placing insurance, which would be disclosed in writing. For example we may receive commission payments as part of a clientâ€™s insurance premium and may receive a client-paid fee for additional services such as third party administration of employee benefits or risk management.
How We Conduct Business
As your independent insurance broker, we purchase insurance products and services on your behalf that are available, affordable and understandable.
Our role is to provide you with the best insurance value that combines coverage, service, and price. We also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance, and claims support. When any issue arises regarding your insurance coverage we are your advocate, using our professional experience to best represent your individual interest
Brokerage compensation is part of your insurance premium. Commissions are paid to us on an annual basis for both new business and renewals. We have listed below the insurers that we represent and have included the commission that each provides as a percentage of your overall premium:
PERSONAL LINES – Automobile (may include Recreational Vehicles), Property (may include Farms & Watercraft) and Excess Liability (Umbrella)
|Aviva Insurance Company *||12.5||20||15|
|Chubb Insurance Company *
|Travellers/Dominion of Canada*||12.5||20|
|Halwell Mutual Insurance Company *||12.5||20|
|Intact Insurance *||12.5||20||15|
|Northbridge General Insurance*||12.5||20||20|
|Pafco Insurance Company||12.5||15|
|Pembridge Insurance *||12.5||20|
|Royal & Sun Alliance||12.5||20||15|
|Royal & Sun Alliance Facility||10||N/A|
COMMERCIAL LINES – Automobile, Commercial General Liability, Composite Mercantile Policies and Bonds
|A.M. Fredricks Underwriting||10|
|Allianz Global Risk||15|
|Atlantic Marine Underwriters||15||15|
|Aviva Insurance Company *||12.5||20||20||12.5|
|Boiler Inspection & Insurance||15|
|Chubb Insurance Company *||10||15||20|
|Coast Underwriters Limited||12.5||15||20|
|Encon Ins. Managers Inc.||15||7.5|
|Export Development Corp.||10|
|Frank Cowan Company||12.5||10||15|
|Guarantee Company of N.A. *||20||20||25|
|Intact Insurance *||12.5||20||20|
|Northbridge General Insurance*||10-12.5||20||20||25|
|Pafco Insurance Company||12.5||20||20|
|Royal & Sun Alliance *||12.5||20||20||25|
|Royal & Sun Alliance Facility||10|
|South Western Group||15||15|
|Summit Underwriting Group||15||15|
|Travelers Insurance Company||15||20|
|Wholesale Insurance Group||12.5||12.5|
Contingent Profit Commissions (CPC)
In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. The more reputable insurers we represent means the more choices we are able to offer customers.
The insurers with an asterisk noted above recognize our efforts through a Contingent Profit Commission contract. Payment of this CPC may depend on a combination of growth, profitability, volume, retention and increased services that we provide on behalf of an insurer. CPC is not guaranteed. For detailed information on CPC, please go to the individual company’s website. Northbridge Insurance Company owns a minority share interest in NFP, Inc. for the purpose of succession planning.
Exclusive Contracts with an Insurer
We are an independent insurance brokerage, and as such have access to many insurance companies. It is our responsibility to shop the market and obtain “the best product, the best price and the best service” for consumers.
Should there be an increase in any commission we receive from your insurer or any other material change that affects compensation arrangements, this disclosure statement will be amended accordingly.
If you have any questions regarding this or any other aspect of your insurance please contact us.