Brant Mutual Insurance Company is your company, owned by you, and we are committed to serving you with professionalism and integrity. The Insurance Industry recently demonstrated its commitment to keeping consumers fully informed. We fully support total consumer knowledge and awareness.
In keeping with our Code of Consumer Rights and Responsibilities, we feel that you have the right to know how our sales distributors (Agents & Brokers) are compensated. Brant Mutual distributes its insurance products through licensed agents (distribute only Brant Mutual products) and brokers (distribute Brant Mutual's products along with others insurers). These Agents and Brokers are located throughout our areas of operation within Ontario. We consider this to be the most effective method of distribution. Our Agents and Brokers live in the communities that Brant Mutual serves and we believe they provide the best possible service and advice to our Policyholders. We are very proud of these knowledgeable and professional individuals. Our Agents and Brokers exercise the utmost diligence, honesty and good faith when performing their duties, in properly and promptly servicing policies, and in our communications and dealings with Policyholders.
Our Agents and Brokers are compensated for the services they provide by means of a commission schedule, which is included in our contractual agreement. The schedule is as follows:
Automobile Policies: 5.0% to 12.5% of the premium.
Farm Policies: 9% to 20% of the premium.
Residential Policies: 9% to 20% of the premium.
Commercial Policies: 9% to 20% of the premium
Contingent Profit Commission: This agreement is available to some of our distributors to recognize the contribution of the individual Agent's or Broker's Policyholders to the profitability of all Policyholders. The formula used takes into account:
The earned premiums generated from business written by the Agent/Broker. The cumulative 3-year average experience for claims generated from business written by the Agent/Broker including adjusting costs. The operating expenses, including reinsurance costs, allocated to the Agent/Broker. If the calculation generates a profit, a portion of that profit is paid to the Agent/Broker, if no profit is generated no payment is made. The amount payable under the Contingent Profit Commission is capped at a percentage of gross profit.
Total commissions paid to distributors in 2004 were $712,258 ($652,398 in 2003). This represents 12.3% of Written Premium for 2004 (12.5% in 2003). Contingent profits paid to distributors in 2004 and 2003 are included in the above totals.
Brant Mutual Insurance Company has no equity position in any brokerage business. In addition, Brant Mutual Insurance Company has not made any loans or provided any other financial support to our Brokers in the development of their brokerage business, to acquire other brokerages or to facilitate succession among partners due to say, retirement.
Brant Mutual Insurance Company would only provide broker loans or business financing if it was deemed by the Board of Directors and Management to be in the best interests of our Policyholders.
If you have any questions, please contact us.
