January 2005
NEWSLETTER To Commercial Insurance Clients of KNOX INSURANCE BROKERS LTD
From: Gisele Donovan
Manager, Commercial Lines
January 2005 |
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TOPIC: Our Broker Compensation
As your insurance broker, we purchase insurance products and services on your behalf, maintaining defined service standards and insuring delivery of these value-added services according to client segment as a trusted advisor rather than a product vendor. We provide to you professional insurance and risk management advice, ongoing policy maintenance, and claims advocacy.
Brokerage compensation is part of the premium that you pay. To assist your understanding, we have listed below our Personal insurance companies, including the range of commission that each pays as a percentage of overall premium.
| Automobile | Property/Liability/Other | |
| AXA Insurance (Canada) * | 7½% - 12½% | 15 - 20% |
| AVIVA Canada Inc.* | 7½% - 12½% | 15 - 20% |
| Economical Insurance | 7½% - 12½% | 20 - 25% |
| Guarantee Company of North America | N/A | 20 - 25% |
| The Hartford | N/A | 10 - 15% |
| ING Insurance Company of Canada * | 7½% - 12½% | 15 - 20% |
| Lloyds | N/A | 17½% |
| Liberty Mutual | N/A | 10 - 20% |
| Optimum Frontier Insurance Company * | 10%-12½% | 20% |
| Old Republic Insurance Company | 10% | 10% |
| Pilot Insurance Company * | 4%- 17½% | 20% |
| Facility Association (Royal and Sunalliance) | 7½% - 11% | N/A |
| (Commission is capped at $250. on certain classes) | ||
| Royal & Sunalliance* | 7½% - 12½% | 15 - 20% |
| Sovereign General Insurance Company | N/A | 15 - 20% |
| Wawanesa Insurance Company * | 12½% | 20% |
| Zurich Insurance Company * | 7½% - 12½% | 10 - 20% |
* denotes companies with which we have a contingent profit agreement.
Some insurers reward our ability to underwrite with a profit-sharing agreement. Payment on this agreement is contingent upon such factors as growth, retention, size as well as long-term profitability. It is by no means a guaranteed payment and normally would not exceed 1% of the total book of business.
Your insurer has adopted a Consumer Code of Rights and Responsibilities; this document is available from their website, or by contacting our office.
Thank you for the opportunity of providing insurance and risk management services to you.