How we get paid

York International in our capacity of providing services to you, our client, for insurance brokerage and other related services earns revenue in a number of ways. We are compensated primarily through commissions included in placed policy premiums and direct fees paid by clients. Also, from time to time, we earn additional other forms of compensation. More information about each method of compensation is below.

Commission Income

Commission is normally calculated as a percentage of the premium paid to the insurer for a specific policy. Our commission rates vary by insurer and by policy type. The commission percentages are dictated by the various insurance companies.

Fees Paid by Clients

On occasion a fee may be negotiated for policy placement or risk management services. All fees are disclosed and agreed upon by clients before services are ever performed. Fees charged for the placement of insurance will be included in the proposal and will be supported by a fee agreement that is approved and signed by the client and York International. On occasion, and only with the express consent of the client, we may receive both commissions and client-paid fees for the negotiated services requested by the client.

Other Forms of Compensation

We also receive income through contingency or supplemental programs with a limited number of insurers we place policies.

Contingent arrangements and their program qualifications vary. However a common feature is a calculation that analyzes both premium growth (retention and new business) and claims results across the qualifying policies. Typically the program qualification and the payment calculation occurs in the same calendar year. Generally it is difficult to determine the exact impact any one client’s policy may have on the amount earned in an insurer contingent program.

Some insurers have replaced contingent commission arrangements with guaranteed supplemental commissions. If York has qualified in a given year we will know the exact percentage that will be paid because the qualification was based on performance over a prior time period (unlike a contingent arrangement). Our qualification into these programs is typically based on premium growth and loss experience over a multiyear performance period.

If you would like to discuss this in more detail please contact a senior member of your account service team.