Binks Insurance Brokers Limited is an independent brokerage. We believe that our independence is an important factor in protecting your best interests as a client.
We further believe that you are entitled to full and open disclosure about how we are compensated, and about whether or not there are any circumstances which might give rise to a potential conflict of interest in the placement of your personal or business policies with a particular insurance company.
Our full statement on compensation disclosure is provided as follows.
Overall, there are eight different areas where an insurance brokerage could face a potential conflict of interest. We have addressed each area in the following paragraphs:
– Payment in full upon the effective date of the coverage.
– Where possible, an Automatic Monthly Payment Plan with some insurers. These plans typically include a finance fee. This also includes an option to pay by credit card.
– Premium Financing through a Third Party company such as CAFO or SNAP
Brokerage commission is a part of most insurance premiums. The commissions paid by insurers are fairly standard, and vary according to type and classification of insurance policy: Automobile ranges from 10-12.5%, Property ranges from 10-20%, and Liability commissions are from 10% to 20%.
This commission percentage is paid annually for both new business and renewals. Overall, the average commission across our entire book of business is about 15%, out of which we must pay salaries, sales commissions, taxes (including full GST with no input tax credits) and other operating costs of doing business.
For your information, we have listed below the majority of Insurers that we represent:
* insurer provides profit-sharing and growth incentive
** commission is capped on Facility business.
In some cases, we receive no commission at all from an insurer, and we must charge a fee for services rendered to you. If we do receive a commission from an insurer, and also find it necessary to charge a fee because of other expenses in handling your file, then we have a professional obligation to fully disclose to you the full compensation.
In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. The Insurers with an asterisk noted in the table recognize our efforts through a profit-sharing contract. Payment of this profit-sharing commission may be contingent upon on a combination of growth, profitability (loss ratio), volume, retention and increased services that we provide on behalf of the Insurer. This additional compensation is not guaranteed, nor is it applicable to any one policy. Canadian Insurance Companies now post details of these plans on their corporate websites.
At Binks Insurance Brokers Limited, we purchase insurance products and services on your behalf that are available and affordable in the current marketplace. 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 advocates, using our professional experience to best represent your individual interest.
Your Insurer will be providing you with a Consumer Code of Rights and Responsibilities, which will be sent to you with your next policy. If you have any questions regarding this or any other aspect of your insurance please contact us.
Harry S. Binks, MBA, CIP, CCIB, CRM