We pay our brokers a commission - as do most insurers - in exchange for the services they provide. In addition to providing professional advice and arranging insurance coverage, those services also include tasks like processing your policy changes and assisting you in the event of a claim.
The commissions we pay to brokers are based on a percentage of premiums written for SGI CANADA.
- 20% standard personal and commercial
- 10 to 25% specialty farm and commercial
- 15% personal
- 7.5 to 12.5% commercial
- 17.5% heavy farm trucks
- 15 to 30% all bonds
Our brokers are eligible for a contingent commission when they write profitable business for us. Contingent commissions are paid once a year and are based on the overall premiums and financial results generated by a broker for SGI CANADA products and not on any particular account or group of accounts.
The Brokers' Performance Bonus Plan is a voluntary program offered by SGI CANADA. The Brokers' Performance Bonus Plan and any payments made pursuant to the program are at the full discretion of SGI CANADA and may be cancelled or modified at any time.
SGI CANADA pays profit commissions which have averaged 1.45% of total premiums written.
The corporation offers a broker share-cost advertising program whereby the corporation will pay a portion of the cost of approved media and promotional advertising.
SGI CANADA offers a Registered Retirement Savings Plan program for its brokers. Through the program, SGI CANADA matches broker contributions. The cost to SGI CANADA is about 0.7% of premiums written.
We provide financing to a small number of brokers to aid in the acquisition of other brokerages, to expand their existing brokerage or where a broker may buy out the interests of a retiring broker. The interest rate charged on these loans is similar to those at financial institutions.
SGI CANADA has an equity investment in the common shares of one publicly traded brokerage representing less than 5% of the outstanding equity of that broker. There are no premium commitments and this investment doesn’t influence the day-to-day operations of that brokerage.
Training and conferences
As part of normal business practice, brokers and their staff are invited to participate in training and entertainment events. Brokers pay a fee to attend the annual SGI CANADA Brokers’ Convention, which is primarily an educational event, but also includes social activities.