We are paid commissions by the insurance carrier with which we place your risks. The commissions are a percentage of your premium and are paid to us by the carrier on a recurring, annual basis. Commission rates vary by carrier and carriers also pay scaled commissions based on volume and profitability. Our practice is to place your risks with the carrier that offers you the most competitive terms and pricing. Commission rates do not affect the carrier or the coverage we recommend.
Some carriers pay us incentive commissions based on volume, growth and profitability of our book of business. The personal lines property casualty insurance market is very competitive and is characterized by considerable volatility in premiums and terms. We believe that incentive commissions in the personal lines side of the property-casualty insurance industry do not conflict with client interests. Clients are seeking dependable, long-term coverage at competitive rates. Carriers are seeking stable profitable business. The needs of clients and carriers are mutually dependent. This dynamic, together with a competitive market, results in an alignment of interests between clients and carriers over time. Clients need profitable financially stable carriers. Carriers need satisfied clients.