Farmers’ Mutual has contracts with Insurance Brokers throughout Central Ontario. Brokers are independent business people who have contractual relationships with several insurance companies.
They have the expertise to assess your insurance needs, provide advice and recommend the best coverage. We guarantee that Farmers’ Mutual and our affiliated Brokers operate to the highest professional standards.
Commissions
Our Brokers are compensated through commission payments, which are based on a percentage of your insurance premium. Brokers are obligated to disclose their commission earnings on a client’s policy, if the client asks.
The following is a breakdown of the commissions paid by Farmers’ Mutual to contracted Brokers:
- Private Passenger Automobile 12.5%
- Commercial Automobile 12.5%
- Residential and Personal Property 20.0%
- Commercial Property 20.0%
- Farm Property 20.0%
Contingent Profit Commissions (CPC)
As part of our brokerage contract, Farmers’ Mutual recognizes Broker profitability through a Contingent Profit Commission (CPC) program. Receipt of a CPC payment is entirely dependent on the overall profitability of the business submitted by the Broker. Thus, this commission is not guaranteed to a Broker. Over the past three years, CPC payments have averaged 0.95% of total Written Premium.
Broker Loans
Farmers’ Mutual can provide loans to help brokers develop their business, acquire other brokerages, or to facilitate succession among partners upon retirement. These loans are available because brokers may have difficulty obtaining financing at reasonable terms.
Farmers’ Mutual has no equity position in any brokerage business. We only extend loans that are secured by real estate owned by the principals or equivalent security. Supporting our Brokers allows them to continue to provide you with the expert advice and excellent service you expect from us.
