Broker and Independent Agent Compensation
Insurance brokers and independent insurance agents play a vital role in the insurance purchasing process. AIG’s domestic property and casualty insurance companies (the AIG Companies) value the role of these insurance producers in advising and consulting with insurance buyers, and generally compensate them in recognition of their participation in the purchasing process. Please contact your insurance broker or independent insurance agent to obtain information about the specific compensation they may receive in connection with the issuance of your policy.
AIG supports the disclosure of compensation paid to insurance brokers and independent insurance agents. This information can help our customers make informed purchasing decisions.
AIG’s policy on compensation to insurance brokers and independent insurance agents placing property and casualty insurance business with AIG’s offices situated and issuing insurance policies in the United States includes the following:
AIG Companies compensate insurance brokers and independent insurance agents through commissions of either a specific dollar amount or a percentage of premium set at the time of each purchase, renewal, placement or servicing of a particular insurance policy.
AIG Companies may also pay contingent compensation to insurance brokers and independent insurance agents. Contingent compensation may be paid in addition to commissions of a specific dollar amount or a percentage of premium set at the time of a purchase, renewal, placement or servicing of a particular insurance policy. Contingent compensation is typically based on criteria such as the volume of new sales, overall production volume, persistency, or overall profitability of the policies placed by an insurance broker or independent insurance agent. Currently, the AIG Companies do not pay contingent compensation to insurance brokers.
AIG Companies may also have reimbursed certain expenses of insurance brokers and independent insurance agents that place personal lines business and insurance producers that act as program administrators, including but not limited to, advertising and marketing expenses, costs of software and systems upgrades, loss control services, and certain other underwriting expenses. They may also have provided these insurance producers and/or their employees the opportunity to receive additional incentive compensation for placing certain types of policies. This incentive compensation has been both in the form of sales contests where cash or other prizes were awarded and in the form of additional commissions.
