How do we compensate brokers?
A broker’s advice and expertise can help you be sure you’ve got the right policy for you. That’s why we compensate brokers who place your business with RSA on your behalf. This is standard practice in the insurance industry.
We believe it’s important that you understand how we compensate your broker. RSA supports its broker partners through:
- Base commission
- Profit sharing
- Additional commission
- Broker growth support
- Broker recognition
- Equity positions and financing
- Our affiliated broker network
Read how Johnson Inc. compensates its agents.
Base commission
We pay brokers a base commission. This is a fixed percentage of the premium paid for each policy. Our commission is consistent with the industry. If you have any questions about your broker’s compensation, just ask. If you live in Ontario, your broker is required to disclose commission rates. Here is a current list of the commission rates we pay:
| Line of Business | Transaction Comission |
|---|---|
|
Personal Automobile |
10% to 14% |
|
Personal Property (homeowners, tenants and condominium) |
20% |
| Personal Umbrella Liability | 15% |
| Commercial Automobile | 7.5% to 12.5% |
| Commercial Property | 20% |
| Commercial Liability (incl. Umbrella and Excess Liability) | 20% |
| Other lines | 15% to 33% |
In some cases where the risk is uncommon or unique, we may adjust the commission separately.
Profit Sharing
Similar to how many other companies compensate their salesforce, we offer a profit-sharing program to reward brokers who help meet our business objectives.
Additional commission
If a broker chooses to move business to RSA because they feel their customers would benefit more from our products and services, they incur handling expenses. We pay additional commission to brokers who choose to do this, or to those who choose to reach certain volume objectives with us.
On occasion, we may also offer additional incentives/rewards to brokers as part of ad hoc marketing and sales campaigns.
Broker growth support
We also offer our brokers a range of programs to help them improve their service to customers, and support the growth of their operations, including:
- Training and educational opportunities
- Joint marketing programs
- Technology consulting
- Sponsorships and community donations
Broker recognition
We meet with our broker partners to discuss business issues and exchange information. We host business meetings, seminars and conferences with our brokers. Occasionally we invite brokers and their staff to join us in social events to recognize their efforts and to build stronger relationships. We also run contests, with prizes of nominal value, for our brokers' staff (for example, to support the launch of new products or services).
Equity positions and financing
RSA or one of its affiliates may also provide brokers with financial support through loans, bank guarantees and/or equity positions. This financial support helps brokers plan their succession, invest in their brokerage, or grow their business. In some cases, we assume minority equity positions in these brokerages. The brokers continue to operate their businesses as independent brokerages offering their customers products and services from a variety of insurance companies. We believe that brokers must decide what is right for them and their customers. Ensuring that we have the customers’ best interests in mind is at the heart of everything we do.
About our affiliated broker network
We have majority ownership of several brokerages across the country.
These brokers run the day-to-day operations independently and offer customers products and services from a number of insurance companies, including RSA. In every instance that we invest in a brokerage, we stress that the broker must do what is right for the customer.
