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Broker Point of Sale Protocol
Broker disclosure commitments are made in the best interest of you, the consumer.
Regardless of who you use to assist with your buying decisions, be certain you are well informed. When dealing with an Agent or Direct Writer, make sure you understand the relationship they have with their insurer, as most work for only one insurer and are not able to provide you with alternatives. When you are dealing with a call center or 1-800 numbers, ask them where they are located, where you are calling, will they visit your home to discuss your needs; if you call back, who will you speak with if you have a problem?
The role of the broker is to provide you with the best insurance value that combines coverage, service, and price. Brokers also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance and claims support. When any issue arises regarding your insurance coverage, brokers are your advocate using their professional experience to best represent your individual interests.
As a consumer, you must ensure you are knowledgeable of the relationship that exists between your Broker and the Insurer being recommended. Understanding brokerage compensation is an important part of your buying decision. Brokerage compensation is part of your insurance premium. The level of compensation that is included in your premium will be provided to you by the broker at the point of sale. Every Broker in Ontario will provide you with a statement on broker compensation. At the point of sale, the Broker will show each of their insurers by class and include range of commissions for each insurer the Brokerage represents. In addition, should commissions be increased, you will be notified.
Below is an example of the information you should be provided with each new policy at the point of sale:
We have listed below Automobile / Property Insurers that we represent and have included the range of compensation each provides as a percentage of your overall premium that appears on your invoice.
| West Wawanosh Mutual* |
X% to Y% |
| Wawanesa* |
X% to Y% |
| Dominion of Canada* |
X% to Y% |
| Economical Mutual* |
X% to Y% |
| Facility** (Royal) |
X% to Y% |
| Gore* |
X% to Y% |
*company offers contingent profit commissions
**commission is capped at $250.00
This commission percentage is paid annually for both new business and renewals.
Should there be an increase in the commission schedule we receive from your insurer, or, any other material change that affects compensation arrangements, we will notify you.
For commercial insurance, the Point of Sale document will include commission schedules for those companies writing the class of business being offered similar to a personal lines document.
In order for our member brokers to maintain strong relationships with quality insurers, they work with each to provide the type of business the insurers desire. The sample above makes reference to a Contingent Profit Commission (CPC). Payment of this Contingent Commission may depend on a combination of growth, profitability (loss ratio), volume, retention and increased services that our member brokers provide on behalf of the Insurer. Contingent Commission is not guaranteed. For detailed information on Contingent Commission, please go to the individual company’s website.
Brokers in Ontario will also declare if they have any other financial links that could be considered a conflict of interest such as:
- Any direct or indirect ownership interest by an insurer or financial conglomerate
- Any loan, credit facility or other financial relationship direct or indirect with an insurer represented by the brokerage, and
- They may advise that they have no ties whatsoever as noted above
We encourage you to also consult the commitments made by the insurance industry and individual companies by consulting their websites or other available information.
“Your Best Insurance is an Insurance Broker.” |
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