Zurich Producer Compensation
Welcome to Zurich's Producer Compensation Web Site
Zurich is proud to distribute many of its insurance products through agents and brokers. We value, and customers rely on, agents' and brokers' trusted professional advice, risk management counsel and expertise in placing insurance coverage.
We value and appreciate our business relationships with agents and brokers, and compensate them accordingly for their many professional services. Zurich is committed to transparency about that compensation. For an explanation of the nature and range of compensation agents and brokers may receive from us, please select the relevant link(s) at the left. You may also obtain this information by calling (800) 382-2150 or writing to Zurich, 1299 Zurich Way, Schaumburg, IL 60196-1056.
Insurance brokers and independent agents are not employed by Zurich. They may represent many insurance companies and their compensation may vary. Zurich also has employees who act as agents to sell and service a limited number of our products. If a Zurich employee is serving as your agent, they are compensated via salary and sales incentives. If you are interested in the producer compensation details for your specific quote or policy, please contact your agent's or broker's office.
We appreciate your consideration of Zurich for your insurance and risk management needs. The commercial property and casualty insurance we provide in North America is part of the Zurich Insurance Group Ltd., which includes a global network employing approximately 60,000 people serving customers in more than 170 countries. Please be advised that your access to this Web site is governed by the Terms of Use. Please review them before accessing this Web site. Your use of this Web site constitutes your acceptance of the Terms of Use.
Zurich pays commission to agents and brokers as compensation for their work in placing and servicing your insurance. Such commission is generally expressed as a percentage of the premium you pay.
The actual commission that your agent or broker is paid depends on a number of factors. The following describes the process that is generally used to determine the commission.
As we develop our quote, the commission is based on factors that may include the type of policy, the premium size, individual policy underwriting considerations, other services provided by your agent or broker, and the compensation arrangements we may have with your agent or broker. Also, the actual commission paid may include additional commission amounts payable to certain producers.
For each type of policy for a particular insurance market segment, Zurich determines a maximum commission that is generally the most Zurich will pay. For some types of policies, it is a flat percentage, and for other types of policies, the percentage is reduced as the policy premium increases.
In some instances, an agent or broker may request a quote with no commission because compensation arrangements are being made directly with the customer. Please note for those specific instances in which an agent or broker declines to accept commission, we may not be permitted by state law to lower the premiums charged.
This Web site provides information about the nature and range of commissions by line of business. The Commission Payment table found via the links on the left will show information on the commission payments that apply to your policy's line of insurance business. The actual percentage commission that we would pay on your individual policy is not provided on this Web site. All commission arrangements are subject to the laws of the applicable jurisdiction(s).
Contingent compensation is based on a formula that usually includes consideration of your premium and losses along with that of other Zurich customers served by your insurance agent or broker. To determine whether your insurance agent or broker is eligible for an award at the end of the calendar year, we review your agent or broker's business in light of the formula. The formula normally includes one or more of the following components:
Premium volume
We pay a percentage of the eligible business written depending on the total amount of the eligible premium. For most insurance distributors, premium volume consists of existing business and new business. In most instances, it is desirable for us to encourage premium growth. To do so, we have some incentive agreements that specifically reward growth over the prior period or the development of new business.
Profitability
Profitability of the business is determined by comparing (1) the losses that are incurred on the policies issued (including in some instances the related, general expenses) to (2) the premium paid for those policies.
Premium business
We may pay contingent compensation for the placement of particular types of business with us.
Other Compensation
In addition to paying base compensation and contingent compensation to agents and brokers in connection with specific policies, we may also provide other benefits to them in the course of our business dealings, including paying for certain meal and entertainment expenses.
Some benefits are promotional events to which agents and brokers may be invited. Promotional events serve to promote Zurich as an insurance carrier available to agents and brokers to place insurance, strengthen our relationships, and enable the agents and brokers to learn more about our products and services.
We may also sponsor educational events so that agents and brokers can learn more about our products and services; we may also pay for their professional continuing education.
In addition, we may pay for expenses incurred by agents and brokers for sales or marketing activities, or other customer outreach. Upgrades to agent and broker computer systems are sometimes funded by Zurich.
Also, we may retain agents and brokers for their expertise in providing services such as risk engineering, or underwriting. We may support charities designated by agents and brokers. In some instances, we may provide loans to agents or brokers or acquire an equity interest in them. We also may provide brokers and agents certain gifts of modest value.