It is of paramount importance to us to uphold the ethical principles and standards of our profession. Our role is to provide our clients with the best 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 individual interest.
Insurance brokers are under a professional obligation to act in the best interests of their clients. The fundamental premise is that our clients are entitled to information about our business relationships that pertain to a transaction or recommendation. By disclosing the business relationships that exist with those parties involved in the provision of insurance to our clients, we strive to eliminate an inference that any influence exists that may impair the ability of our brokers to act in the best interest of our clients. In this regard, here is information about the following categories of relationships:
- Any direct or indirect ownership interest or any kind in a brokerage by an insurer, or in an insurer by a brokerage
While Advocis Broker Service Inc. (“ABS”) is a wholly owned subsidiary of The Financial Advisors Association of Canada (“TFAAC”), ABS operates independently with its own staff, and an independent board of directors, and is thus an independent brokerage. As a subsidiary, ABS reports to its parent company, TFAAC, on overall corporate results and business issues. ABS does not reveal or share with TFAAC any confidential and/or private information of its clients. No insurer has a direct or indirect ownership interest in either ABS or TFAAC.
- Common ownership of a brokerage and an insurer by a financial conglomerate or other holding company or group of companies
ABS is not owned, whether directly or indirectly, by any financial conglomerate or group of companies that includes an insurer and is thus an independent brokerage.
- A loan, credit facility or other financial relationship, direct or indirect
ABS do not have a loan, credit facility or other financial relationship with an insurer or otherwise, whether direct or indirect, that could give rise to a conflict of interest and is thus truly an independent brokerage.
- Exclusive contract or one market exceptions/Volume or mix of business requirements.
In connection with errors and omission insurance for TFAAC members, the insurance is underwritten on a program basis by Zurich Insurance Company Ltd (Canadian Branch) (“Zurich Insurance”) and is available to TFAAC members and non-members. As such, ABS do not offer a choice of insurers in connection with this errors and omissions program.
- Compensation Disclosure
As an insurance brokerage, ABS is compensated in a variety of ways, including commission and contingency amounts, paid by insurance companies and in certain instances by its clients or other third parties. A breakdown of the different compensation that ABS receives is as follows:
Commission Income: Compensation from commissions is part of clients’ insurance premium and is paid to ABS by the insurance company. ABS has separate commission agreements with each insurance company that vary by business line. Commission range of 10-25% based on the premium a client pays.
Contingency Income: To maintain strong relationships with its contracted insurance companies, ABS works with them to place business that best fits their target categories. Some insurance companies provide an incentive through profit sharing arrangements if ABS achieves certain retention, growth, and overall portfolio profitability targets. ABS’ contingent bonuses are never guaranteed and do not influence where ABS places its clients’ business. This type of income is typically held at the company level and individual brokers are not compensated directly for the contingent income received.
Fees paid by clients: For complex business insurance programs a fee may be negotiated for the placement of insurance coverage and additional services or products. These fees are typically presented in a proposal and approved by the client.
Sales Incentives: ABS receives sales incentives and volume overrides from certain insurers.
Premium Financing Companies: ABS also receives referral fees from certain suppliers.
If you have any questions regarding this or any other aspect of your insurance policies, please contact us at email@example.com or 1-877-646-9888 (EN) or 1-877-481-1481 (FR).