Broker compensation
Zurich distributes commercial insurance products through a network of selected authorized independent insurance brokers. Brokers act on behalf of customers and provide professional advice to assist them in making informed decisions with respect to their insurance needs.
Zurich contracted brokers are compensated in the form of a commission, which is a percentage of the insurance premium. However, there are instances when premiums are quoted without commission and Brokers are compensated by way of a fee charged directly to the insured. Brokers have a duty to disclose to their clients, their commission earnings on a given policy if requested.
The following is a range of commissions paid to Brokers although actual commissions may vary based on several factors including size of account. In addition, brokers may perform services on our behalf such as data entry, claims servicing or policy document issuance and will be compensated, on a pre-arranged basis, for this additional work.
Broker Commission Schedule
| Automobile |
7.5% - 12.5% |
| Casualty |
10% - 20% |
| Inland Marine |
10% - 20% |
| Property |
10% - 20% |
| Contract Surety |
5% - 25% |
| Commercial Surety |
10% - 30% |
Contingent Profit Commission (CPC)
Under the Zurich contract, Zurich recognizes brokers that contribute to our profitability. As a result, your broker may be paid an annual contingent profit commission (CPC), based on the profitability of business submitted by the broker over an extended period of time, normally a two year period. Eligibility to receive CPC is based upon meeting Zurich’s premium threshold, which varies by province. Typically, Zurich pays out 1% - 2% of our applicable written premium to our brokers.
Broker loans or ownership
Many brokers require financing for the development of their brokerage businesses, whether to acquire another brokerage or to buy out the interests of a retiring colleague. Financing may be difficult to obtain or available only with unfavourable terms because many lending institutions do not always recognize the full value of the broker’s principal assets, which are their customer list and the goodwill associated with it.
To support brokers in this regard, Zurich will consider providing financing to brokers at market interest rates. When Zurich provides financing, the broker is expected to act in their customers’ best interest and disclose the nature of the relationship at point-of-sale. Under no circumstances will any loan agreement contain volume or premium conditions.
At Zurich, we’re committed to supporting our brokers as they deliver tailored insurance products, risk solutions and professional expertise to customers.
Zurich has no direct or indirect ownership interest in its brokers.