The methodology for calculating the payment will vary by insurer, but generally the contingent commission, if paid, will range from 0.25% to 2.2% of the premium that HUB Insurance Hunter produces for that insurer. For this reason, the individuals involved in placing or servicing insurance are rarely compensated directly for the contingent income that we receive. In other words, the amount of earned contingency income depends on the overall size and/or profitability of a group of accounts, as opposed to the placement or profitability of any particular insurance policy. There is generally no meaningful method to determine the exact impact that any particular insurance policy has on contingency arrangements however, brokers tend to receive higher contingency payments when they grow their business and retain clients through better service.
Contingency arrangements vary, but payment is normally the result of growing the business by attracting new customers, helping the insurance company gather and assess underwriting information, achieving certain loss or claims results and/or working to renew the policies of existing insureds. They are called “contingent” because to qualify for payment we normally need to meet certain criteria, usually measured on an annual basis. This base commission will vary from 9% to 20% depending on the product line and insurer.Ĭontingency income - We also receive income through contingency arrangements with most insurers. The individuals at HUB International who place and service your insurance may be paid compensation that varies directly with the commissions we receive. Our commission is included in the premium paid by you. HUB Insurance Hunter receives compensation in two ways: commission income and contingency income.Ĭommission income - Commission, normally calculated as a percentage of the premium paid to the insurer for a specific policy, is paid to us by the insurer for the distribution and servicing of your insurance policy. HUB Insurance Hunter is a privately-owned insurance brokerage without financial affiliation to any individual insurance company. HUB Insurance Hunter would like to make you aware of who we are and how we are compensated.
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