If you are not in Ontario, Canada, please view this version of How We Get Paid.
Insurely Inc. takes pride in the services our brokerage provides to you, our client, for insurance brokerage and other related services. For our efforts we are compensated in a variety of ways, primarily in the form of commissions and contingency amounts paid by insurance companies and, in some cases, fees paid by clients or third parties. The means by which we are compensated are described below.
Commission Income
Commission, normally calculated as a percentage of the premium paid to the insurer for a specific policy, is paid to us by the insurer for the distribution and servicing of your insurance policy. Our commission is included in the premium paid by you. The individuals at Insurely Inc. who place and service your insurance may be paid compensation that varies directly with the commissions we receive.
BCMFI 20% Personal Property / Incentive Income - Supplemental
Agile Sprint 20% Personal Property / Incentive Income - None
SGI Canada 20% Personal Property / Incentive Income - Contingent
My Mutual 20% Personal Property / Incentive Income - None
Contingency Income
We also receive income through contingency arrangements with most insurers. They are called “contingent” because to qualify for payment we normally need to meet certain criteria, usually measured on an annual basis. Contingency arrangements vary, but payment is normally the result of growing the business by attracting new customers, helping the insurance company gather and assess underwriting information, achieving certain loss or claims results and/or working to renew the policies of existing insureds. There is generally no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements; however, brokers tend to receive higher contingency payments when they grow their business and retain clients through better service. In other words, the amount of earned contingency income depends on the overall size and/or profitability of a group of accounts, as opposed to the placement or profitability of any particular insurance policy. For this reason, the individuals involved in placing or servicing insurance are rarely compensated directly for the contingent income that we receive
Supplemental Commissions
Some insurance companies have recently replaced contingent commissions with supplemental commissions. These commissions, in fixed amounts, are established annually in advance based on historical performance measured by criteria comparable to those by which contingent commissions are calculated. We refer to these commissions as guaranteed supplemental commissions, or “GSCs”.
Fees Paid by Clients
On occasion, with more complex business insurance programs and where additional resources, products or services are appropriate, a fee may be negotiated for placement of insurance coverage or additional services. Fees charged for the placement of insurance will be outlined in a proposal and approved, usually in writing, prior to the insurer binding coverage. On occasion, we may receive both commissions and client-paid fees for placing insurance, which will be disclosed in writing to you in advance. In certain circumstances clients pay us mutually agreed-upon fees for additional services, such as third party administration of employee benefits or workers’ compensation programs.
Other Compensations and Benefits
We may receive revenue or further benefits from our insurance brokerage activities in other ways, including, but not limited to, from insurance company promotional events, payments from insurers for promotional marketing and/or employee training and development, fees or a percentage of the interest paid to us for the administration of premium finance contracts, interest paid to us by financial institutions earned on fiduciary or trust accounts in which we hold your premium payments pending remittance to the insurance company, and fees paid to us for policy and/or claims administration and/or loss control services that we provide.
Referral Disclosure
Broker Referral Policy
A broker may refer clients to another broker, financial services advisor, or business associate. In return, they may receive a referral fee for this referral.
Compliance with Regulations
All brokers must adhere to their applicable provincial Code of Conduct and relevant legislation at all times.
No Impact on Premium Payments
Please note there is no impact on your premium payments due to a referral. Any fees for the referral are paid by Insurely Inc. to the referring broker.
We believe transparency should be simple — especially when it comes to how insurance works and how we’re paid.
You can reach your Insurely Team anytime at [email protected] or call us directly at 1-877-514-1143
