Producers

We primarily sell our insurance products and services through an extensive network of independent insurance agents and brokers, and we consider this the preferred way of distributing our products. We call these independent agents and brokers "producers."

Producers are not our employees. However, producers may receive compensation from us for placing your insurance with us. This is an overview of how we compensate producers.

Producer Compensation

We design our compensation system to encourage producers to sell our products, to assist us in evaluating risks and servicing accounts, and to maintain a volume of profitable business with us. Currently, our compensation programs fall into five basic types: 1) base commissions; 2) contingent commissions; 3) supplemental compensation; 4) business production incentives; and 5) promotional expense reimbursements. We might not pay all these types of compensation, or any compensation, to a producer who places a policy with us.

For example, we do not pay contingent compensation on Personal Insurance, Excess Casualty, or Boiler & Machinery policies at this time. In addition, with respect to policies that are eligible for contingent commissions, a producer may elect to receive either supplemental compensation or contingent commissions, but not both.

• Base Commission Programs
  
  We generally pay producers a fixed commission for business placed with us. We pay commission on new and renewal policies. This commission is usually a fixed percentage of the premium a policyholder pays. The percentage varies according to factors such as the type of business, the type of risk, and the state where a risk is located.



• Contingent Commission Programs



• Contingent commission, sometimes referred to as a performance plan or a profit sharing program, provides for payment when the producer achieves various pre-set goals. A producer may have separate contingent commission plans with our different business units. We normally evaluate performance against the pre-set goals annually. If the producer has met the goals, the payment amount is usually a percentage of the premium a producer has placed with us for specific types of insurance.



• A contingent commission plan generally uses one or more goals, separately or in combination, to determine if a producer will receive a payment. These goals may include:
  
  Profitability

  We measure a producer’s profitability by comparing losses to premium on the policies the producer placed with us for specific types of insurance. The policies the producer has placed with us must achieve a pre-set ratio of losses to premium to be considered profitable.

  Volume

  We measure the premium volume of policies a producer places with us. We may measure one or more types of insurance.

  Growth and Retention

  We measure whether the amount of business a producer has with us is increasing or decreasing. We may look at change in premium volume, change in the actual number of policies, number of newly written polices or a combination of these. These calculations may vary by type of insurance.

  Tactical Performance

  We measure if a producer has met pre-set tactical performance goals relating to account services, such as the percentage of the producer’s customers who sign-up for electronic fund transfer premium payments. These goals often differ by business unit and by producer.

• Supplemental Compensation Programs
  
  On Personal Insurance products and on certain commercial lines policies as well, we pay some producers a pre-set supplemental compensation on new and renewal policies written during a year.
  
  We determine the supplemental compensation rate for each policy sold during the year at the outset of the year, based on an evaluation of the producer’s historic performance with us. In determining this pre-set supplemental compensation rate, we consider historical performance items such as a producer’s loss ratio (ratio of losses to premium); premium volume with us; growth in the number of policies with us; and compliance with performance standards.



• Business Production Incentive Programs
  
  At times we will provide producers or their employees the opportunity to receive additional compensation for placing specific types of polices with us, helping us pursue new business opportunities with their customers, or performing other tasks.
  
  An agreement by a producer to move policies from a specified insurance company to us, a so-called book transfer, is an example of this type of program. We generally compensate agents by paying additional commission or a specific dollar amount on the policies we sell as a result of these agreements.
  
  This category also includes sales contests, where cash or other prizes are awarded for policies written with us. These incentives are designed to encourage the placement of business with us.



• Promotional Expense Reimbursements
  
  We may also reimburse certain producers’ expenses relating to marketing activities. Reimbursable expenses may include advertising costs, travel to and attendance at Travelers-sponsored conferences or events, training expenses, or the costs of other goods and services that help to promote our company and our products.

Additional Information

You can view information on the ranges and types of compensation we pay producers on various products we offer by clicking on the applicable link below.

If you would like additional information regarding compensation arrangements applicable to your account, please contact your insurance broker or your independent insurance agent directly.

Commercial Lines

• Boiler and Machinery
• Commercial Auto
• Commercial Liability
• Commercial Multi-Peril
• Commercial Property
• Fidelity
• Inland Marine
• Ocean Marine
• Surety
• Workers Compensation

Personal Lines

• Homeowners
• Personal Auto
• Other Personal Lines Products