Broker Compensation

Our relationship with insurance brokers and broker compensation explained:

The following information is provided in keeping with our ongoing practices of full disclosure and transparency:

Travelers Canada distributes its insurance products through licensed independent insurance brokers. Our broker agreements require that brokers and Travelers Canada exercise the utmost diligence, honesty and good faith in performing their duties, in properly and promptly servicing policies, and in our communications and dealings with policyholders.

Travelers Canada compensates brokers in the following ways.

Base Commission: We pay brokers a fixed percentage of the premium for each policy written or renewed.  Rates vary by type of business as set out in the table below. In specific cases, the applicable percentage may differ from the amount shown.

Contingent Commission: We have a contingent commission program that recognizes brokers for helping us to write profitable business, allowing us to remain well-capitalized to pay claims and to keep our premiums competitive. Travelers Canada’s contingent commission program is based on the profitability of the broker’s total portfolio of business and the amount of business we transact with the broker. Travelers Canada’s priorities are to meet obligations to policyholders and shareholders.

Service Fees: Some brokers earn service fees (a fixed percentage of premiums or a transaction fee) for performing services such as underwriting, data input, and administration on our behalf.

Other Compensation: We may pay bonus commissions for new business in segments we are seeking to grow or provide financial support to offset costs incurred by brokers in moving or supporting business with Travelers Canada. We may also provide loans to brokers to support business development, including acquisitions and succession arrangements. Where premium targets are set as part of a loan agreement, brokers are required to act in their customers' best interest in all cases.

Our support of brokers allows them to continue to be successful in providing consumers and businesses with expert advice, choice, and excellent service. Please contact your broker for information about the specific compensation they receive in connection with your policy.