NFP is committed to disclosing the type of compensation we may receive.
We are compensated in a variety of ways, including commissions and fees paid by insurance companies and fees paid by clients. We may receive compensation through one or a combination of the methods listed below in accordance with local law and regulation.
Retail Commissions: A retail commission is paid to NFP by the insurer as a percentage of the premium charged to the insured for the policy. The amount of commission may vary depending on a number of factors, including the type of insurance product sold and the insurer selected by the client. Retail commission rates can vary from transaction to transaction and is often dependent on carrier filings.
Client Fees: Some clients may agree to pay NFP a fee for our services in lieu of, or in addition to, retail commissions paid by insurance companies. The fee may be collected in whole or in part through the crediting of retail commissions collected by NFP for the client's placements.
Insurer Consulting Compensation: NFP receives compensation from some insurers for providing consulting, data analytics or other services. The services are designed to improve the product offerings available to our clients, assist insurers in identifying new opportunities, and enhance insurers’ operational efficiency.
Contingent Commissions: Some insurers agree to pay NFP contingent commissions when we meet negotiated thresholds for insurance policies placed with them during a given time period. These thresholds may include elements of volume, profitability, retention and/or growth metrics. The amount of contingent commission earned may vary depending on factors relating to an entire book of business over the course of the year or period. As a result, the amount of contingent commission attributable to any given insurance policy typically will not be known at the time of placement nor can it be readily ascertained.
Compensation for Insurer Administration and Other Services: NFP may operate certain panels, facilities, quota shares, line slips and other placement arrangements with insurers. We may receive separate compensation relating to the creation, management and operation of these arrangements that is in addition to any other fee or commission earned.
Other Benefits or Compensation: NFP may, from time to time, participate in insurance company promotional events or employee training and development provided by insurers. Sometimes, NFP is reimbursed by insurers for its costs related to promotional marketing. Where legally permitted, NFP may earn other income on referrals related to insurance products such as premium financing.