Statement on brokerage services and compensation

Thank you for your 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. For your benefit, we have listed the 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.

Carinsurance, part of Arthur J. Gallagher Canada Limited, may from time to time enter into non-standard arrangements which could have compensation terms that fall outside these ranges. We may carry out additional services such as data entry, processing claims payments and conducting site surveys. This additional work is compensated by payment of an agreed fee or commission.

Insurer Auto Property
Auto Property
AIG (formerly Chartis) 12.5% 20%
Aviva Insurance Company of Canada* 13.5% 22%
Aviva Elite* 12.5% 20%
Aviva Traders* 8-11.5% 16-16.5%
Chubb Insurance Company of Canada* 10% 20%
Economical Mutual Insurance Company* 10%-12.5% 20%
Economical Select* 10% 17.5%
Facility Association (R&SA) 6%-11% n/a
The Guarantee Company of North America* 12.5% 20%
Intact Insurance Company* 10%-12.5% 20%
Jevco Insurance Company* 5%-12.5% n/a
Jevco/Intact Motorcycle* 15% n/a
Novex Group Insurance* 10-12.5% 15-20%
Pafco Insurance Compnay Ltd.* 10%-12.5% n/a
Pembridge Insurance Company* 10%-12.5% 20%
Perth Insurance* 10%-12.5% 15%
Royal & SunAlliance Insurance Company of Canada* 10%-12.5% 20%
Western Assurance Company* n/a 20%

In addition to the Insurance Companies we represent under contract, as indicated above, Carinsurance, part of Arthur J. Gallagher Canada Limited, will place risks with Specialty Markets when it is in our client's best interest. In most cases, these specialty markets provide compensation at a lower rate than the Insurers we represent. In some cases, it may be necessary for us to charge a fee in lieu of or in addition to the commission payable under the insurance policy. In these cases, we will disclose both the fee and any commission payable under the insurance policy.

In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. From time to time, insurance companies offer incentives to brokers, including contest entries, trips and other forms of hospitality. Such sales incentives are typically based on performance criteria established by the insurer. The insurers with an asterisk (*) recognize our efforts through a Contingent Commission contract or an override agreement. Payment of this Contingent Commission depends on a combination of profitability (loss ratio), and / or growth (usually over a number of years) and / or increased services that we provide on behalf of the Insurer.

In some instances, the occurrence of a few large losses on our book of business can disqualify us from receiving a contingent profit payment for one or more years. For information on Contingent Commission, please go to the individual company's website.

If you have any additional questions or require other information regarding any of the compensation received by Carinsurance, part of Arthur J. Gallagher Canada Limited, for any of its insurance brokerage services, please do not hesitate to contact your account executive.