Our remuneration
The background
Pursuant to provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, must make available on their website if they have one, or if not in their public offices, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the intermediary which it has agreed with its product producers.
What is remuneration?
Remuneration is the payment earned by us for work undertaken on behalf of both the provider and you, our client. The amount of remuneration is generally directly related to the value of the products sold.
What is commission?
Commission is payment that may be earned by us for work undertaken for both provider and clients.
There are different types of remuneration and different commission models:
- Single commission model: where payment is made to the intermediary shortly after the sale is completed and is based on a percentage of the premium paid/amount borrowed.
- Trail/Renewal commission model: Further payments at intervals are paid throughout the life span of the product.
- Indemnity commission: Indemnity commission is the term used to describe a commission payment made before the commission is deemed to be ‘earned’. Indemnity commission may be subject to a clawback (see below) if the client lapses or cancels the product before the commission is deemed to be earned.
Other forms of indemnity commission are advances of commission for future sales granted to intermediaries in order to assist with set up costs or business development.
General insurance products
General insurance products, such as motor, home, travel, health, retail or liability insurance, are typically subject to a single commission model, based on the amount of premium charged for the insurance product.
Profit share arrangements
In some cases, we may be a party to a profit-share arrangement with a product provider and will earn additional commission. Any business arranged with these product providers on a client’s behalf will be placed with the product provider because that product provider is at the time of placement, the most suitable to meet the client’s requirements, taking all the client’s relevant information, demands and needs into account.
Credit products
Commission may be earned by us for arranging credit for clients, such as premium finance.
Fees
We may also be remunerated by fee by the product producer such as policy fee or administration fee. On policies where premium is below €10,000 we can charge an administration fee of €50 for each new professional indemnity policy incepted and at policy renewal each year. In relation to other general insurance policies where we do not earn a fee, an administration fee of €50 is charged.
For specific technical and complex claims in excess of €50,000 we reserve the right to charge an additional claims fee. This fee is dependent upon the circumstances and complexity of the individual claims; the fee will be charged at an agreed hourly rate of €100 plus expenses. Any costs incurred on such claims will be discussed and agreed with you before they become due.
Commission rates
Our normal means of remuneration is from commission earned in relation to insurances placed (which is included in the premium the product provider (insurer) charges you), and/or by way of a fee negotiated and agreed with you. The commission levels, which can be viewed HERE, are the maximum we would receive. The level of commission may depend on individual circumstances, based on the following factors: our discretion; whether commission is negotiable; client relationship; complexity of the case.
Other fees, administrative costs and non-monetary benefits
We may also act as a service provider to insurers with whom we have placed your insurances and receive remuneration for services provided to underwriters.
You are entitled, at any time, to request information regarding any commission which we may have received as a result of placing your insurance business.
July 2024
