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 your insurance with us. This is an
overview of how we compensate producers.
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 compensation; 3) fixed, value-based 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.
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:
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.
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.
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
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
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. 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 for policies written with us. These incentives are
designed to encourage the placement of new business with us.
Promotional Expense ReimbursementsWe 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.
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.
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:
- 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.
- 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). CCM is not a Travelers Company.
Northland Insurance Company and its affiliates (Northland brand).