How We Get Paid Disclosure

How We Get Paid

Specialty Program Group Canada Inc. (“SPGC”) is licensed as an insurance agency (or relevant equivalent) in various provinces and territories throughout Canada.

It is recognized that under certain conditions an insurance broker may be required to use the facilities of another insurance intermediary to place insurance coverage, often because that intermediary has access to products or services not available through normal insurance brokerage retail channels that are particularly suitable to a policyholder’s needs.

SPGC takes pride in the services our underwriting professionals provide for placing insurance coverage for our clients. For our efforts we are compensated in a variety of ways, primarily in the form of commissions, policy fees and, in some cases, contingency commissions paid by insurers. 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(s) for the specific policy, is paid to us by the insurer(s) for the underwriting, distribution, and servicing of insurance policies. Our commission is included in the premium paid by the policyholder.

Policy Fees – We also charge a policy fee for our services. Policy fees are outlined in the quote provided to the broker and approved prior to binding coverage. The amount of the policy fee varies.

Contingency Income – We may also receive income through contingency arrangements with insurers. They are called “contingent” because to qualify for payment we would need to meet certain criteria, usually profitability and growth measured on an annual basis. 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. Therefore, there is generally no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements.

Other Compensation and Benefits – We may receive revenue or further benefits from our insurance underwriting activities in other ways, including, but not limited to, from insurer 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 premium payments pending remittance to the insurers, and fees paid to us for policy and/or claims administration services that we provide.

Our goal is to be your insurance supplier of choice. We know you have many options to choose from, so to earn your confidence, we hold ourselves to the highest standard of service and work on a competitive remuneration basis.

Please feel free to ask any questions about our compensation generally, or as to your specific insurance placement, by contacting our distribution team at XXX.

We want you to choose SPGC to be your insurance supplier – and we offer this information to make your decision an educated one.

Compensation Disclosure for Strata Insurance Business – British Columbia

In British Columbia, insurance agencies are required to disclose the amount of compensation received for strata insurance business or, if not known, the method by which the compensation is to be determined and a reasonable estimate of the compensation.

We generally receive a commission of approximately 10% of the premium amount attributable to the insurance we place for a subject strata insurance policy, as well as a policy fee for our services. To estimate the compensation, multiply the applicable premium amount by 10% and add this amount to the policy fee. The policy fee is outlined in the quote provided to the broker and approved prior to binding coverage.