Travelers Producer Compensation Disclosure (United States)


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 their 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 seven basic types: 1) base commissions; 2) contingent compensation; 3) fixed, value-based compensation; 4) business production incentives; 5) promotional expense reimbursements; 6) strategic relationships; and 7) fees for services. We might not pay all these types of compensation, or any compensation, to a producer who places a policy with us.

  • 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 Compensation Programs

    • Contingent compensation agreements, sometimes referred to as performance plans or profit-sharing programs, provide for payment when the producer achieves various pre-set goals. A producer may have separate contingent compensation 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 compensation 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, policy-renewal ratios 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.
  • Fixed, Value-Based Compensation Programs
    • We pay some producers fixed, value-based compensation on eligible new and renewal policies written during a pre-determined period of time.
  • Business Production Incentive Programs
    • At times we will provide producers or their employees the opportunity to receive additional compensation for placing specific types of policies with us, helping us pursue new business opportunities with their customers, or performing other tasks. We generally compensate agents by paying additional commission or a specific dollar amount on new policies that we sell as a result of these agreements.
      A book roll or book transfer – an agreement by a producer to move policies from a specified insurance company to us – is one type of business production incentive program. Another example is a new business override: an increase in compensation for new policies in one or more product lines for a defined period of time. 
      This category also includes sales contests, where cash or other prizes are awarded to producers or their employees for quotes submitted and/or policies written with us. These incentives are designed to encourage the placement of new business with us.
  • Promotional Expense Reimbursements and Other Expenses
    • We may also reimburse or advance certain producers' expenses relating to marketing activities. We may, from time to time, provide office space, equipment and other benefits, and may reimburse a producer's 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.
  • Strategic Relationships

    • There may be situations where, based on the strength of our product offerings and the level and scope of service we can provide to insureds, Travelers is selected by producers to participate on a panel or be part of a book consolidation. In connection with these arrangements, we may be provided with an enhanced opportunity to quote certain segments or classes of business. For business we write in connection with these opportunities, we may pay additional compensation to the producer.
  • Fees for Services

    • We may pay fees to a limited number of producers for services they provide to us. These fees may be a fixed amount, or the fee may vary depending on premium volume or other factors we establish. The producer may perform a range of services for us, including, but not limited to, providing: (1) consulting services; (2) access to platforms that provide analytics with regard to business submitted to us by that producer as well as other metrics regarding our market performance; and (3) information that will assist us in improving our offerings to better meet the needs of our customers.

Ownership Interest in a Producer

Travelers owns Simply Business, Inc., and InsuraMatch, LLC, both licensed digital independent agencies that operate nationwide.

For more information, please see the Simply Business press release and InsuraMatch press release.

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 links 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

Personal Lines

The Travelers Indemnity Company and its property casualty insurance affiliates, One Tower Square, Hartford, Connecticut 06183.

Some of our business units provide insurance and related products and services through separate and distinct companies. These include:

1. First Floridian Auto and Home Insurance Company (Travelers of Florida brand) and The Premier Insurance Company of Massachusetts (Travelers of Massachusetts brand). Policies of these separate companies are not underwritten or guaranteed by other members of the Travelers group of companies.

2. Personal Insurance automobile insurance in Texas is also offered through Travelers MGA, Inc. and Travelers Texas MGA, Inc., and is underwritten by Consumers County Mutual Insurance Company (CCM). Northland Transportation in Texas is offered through Travelers MGA, Inc., and is underwritten by Consumers County Mutual Insurance Company (CCM). CCM is not a Travelers Company.