How We Get Paid

As your independent insurance broker, we procure insurance products and services on your behalf that are accessible, affordable and comprehensible.

Our role is to provide you with the finest 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 advocate, using our professional experience to best represent your interest.

We earn our compensation in the form of the brokerage, paid to us by the insurance companies for the policies that we place with them on your behalf, which may vary for different classes of insurance. We do not charge our clients with any additional fee for the purpose of negotiating and obtaining suitable insurance covers. Notwithstanding anything to the contrary, any fees related to specific professional services that we provide, apart from the placement of insurance coverage, which may or may not form part of the insurance contract, are explicitly communicated and stated in the relevant arrangements, ensuring the highest level of transparency.

Our earnings in the form of brokerage are earned via different modes from insurance companies

Policy Commissions: Some insurance providers pay us commissions as a percentage of the premiums charged to the insured. The amount of commission paid to us depends upon different factors including the type of insurance product sold and may vary from one transaction to another.

Broker Fees: We assist our clients in a number of ways, including insurance placement, risk management, claims management and hence act as the risk consultant for our clients. Clients agree to pay us a fee for our services which could be collected either annually or as stipulated in the broker services agreement. Such fees can be paid to Armour in lieu of or in addition to the Policy Commissions paid by insurance companies.

Conditional Commissions: Some insurers agree to pay additional commissions to Armour at the end of the year and this is based upon achievement of certain goals. These goals are based upon the number of insurance policies placed with the insurer, the total amount of policy premiums placed throughout the year, retention, growth, profitability or loss ratio thresholds. The amount of contingent commission earned may vary depending on factors relating to an entire book of business over the course of the year or period. As a result, the amount of contingent commission attributable to any given insurance policy typically will not be known at the time of placement.

We are compensated as per the following chart from different insurance providers:

Insurer Commission received Remarks Aviva* 8.5% – 20% Includes subsidiary companies Echelon* 5% – 12.5% Economical* 10% – 20% Includes subsidiary companies Gore Mutual* 10% – 20% Gurantee* 12.5% – 20%

Intact* 10% – 20% Includes Jevco Insurance Optimum* 10% – 20% Peel Mutual* 10% – 20% Pembridge* 10% – 20% RSA Facility 7.5% – 11% Capped at $370 Travelers* 10% – 20% Includes subsidiary companies Wawanesa Mutual* 12.5% – 20% Specialty Markets 5% to 15%

These commissions are paid annually for both new business and renewals. In addition to the commission we receive for placing insurance with these companies, we may also receive a “Contingent Commission”. Those companies marked with an asterisk (*) may pay us a contingent commission. This is payable on a book of business that is placed with an insurance company if this book is profitable for the insurance company. This contingent commission is not guaranteed and cannot be predicted in advance.

On occasion we have the need to place coverage with Wholesale Insurance Brokerages, who have access to products and insurance companies that we do not represent. Upon request we can provide you with the commission we receive from these companies

Shall there be further questions regarding our compensation structure, please write to our privacy officer us at hayer@armourinsurance.com and we will be more than happy to answer any queries that you may have.

Armour Insurance Brokers Ltd.

Mississauga