The Horton Group receives compensation for its services in the form of commissions paid by insurance companies and/or fees paid by clients. In addition to commissions and/or fee compensation, The Horton Group may also receive additional compensation from the insurance companies in the forms of, including but not limited to, contingent commission or bonus commission.
Commission Income
The Horton Group receives commissions from insurance companies for placing insurance with an insurance company and for the continued service of clients’ insurance needs. Typically commissions are calculated as a percentage of earned policy premium. Each insurance company establishes the commission percentages that it pays on certain lines of insurance. Our commission is included in the insurance premium paid by you.
Contingency and Bonus Commissions
The Horton Group may receive additional compensation in the forms of, including but not limited to, contingent commission or bonus commission. Contingent or bonus commission is paid by the insurance companies based on a number of factors, all of which are determined by the insurance company. These factors include, but are not limited to: 1) the overall business The Horton Group has placed with an insurance company, which could include factors for retained business, growth or new business and 2) the profitability of that business. The overall contingent or bonus commission paid depends on the size and performance of an entire group of accounts, as opposed to the profitability or placement of any particular policy. The Horton Group has agency agreements with insurance companies that pay contingent or bonus commission that outline the calculation for such contingent or bonus commission payment. During the past five years, The Horton Group’s contingent/bonus income has averaged less than 1% of total premiums.
Supplemental Commissions
Some insurance companies have recently replaced contingency commissions with supplemental commissions. These fixed commissions are established on an annual basis in advance, based on historical performance. Supplemental commissions are calculated based on similar criteria to that of contingency commissions.
Fee Based Income and Supplement Income
The Horton Group may also receive compensation in the form of fees paid by clients. Under fee-based arrangements, the clients agree to pay a fee to The Horton Group net of, or in addition to, commission income. The Horton Group fully discloses all fees in the form of a Fee Agreement. These fees may cover policy services, loss control services, safety consulting and/or claims administration. At times Horton will also provide clients with access to preferred vendors for services that relate to Horton’s placement of insurance for its clients. These vendors pay supplemental income to Horton that relates to Horton’s referral of the service to its clients.
For More Information
The Horton Group is pleased to disclose all compensation amounts to its clients upon written request. For more information on the compensation The Horton Group receives, please contact Kevin Palmer at 708-845-3378 or kevin.palmer@thehortongroup.com.
Your insurance broker plays a key role in the stability and security of your business, so it makes sense to work with a firm that understands and appreciates that responsibility. At The Horton Group, we know that you have a choice when doing business. We appreciate the opportunity to be your partner in developing and implementing Best in Class Solutions for your insurance, risk management and employee benefit needs.