“Are Company Secretaries prepared to comment on the level of fees they pay to brokers in respect of the placement of corporate insurances, particularly D&O Liability Cover? Our brokers are proposing to charge a fee of
It depends. If this is a standalone policy and not part of a bigger corporate spend then it is about right. Depends on geographies covered esp if in US and nature of the business.
FTSE 250said
We pay an annual fee to both our UK and US brokers. This includes renewal services together with other services, such as certain claims handling and other one off projects. Insurance placement fees are never charged seperately to us.
FTSE SMALL CAPsaid
Generally they tend to be based on the level of indemnity covered. A general “rule of thumb” would be c. 10% of overall levels of indemnity. We moved our Brokers from Manchester to London some years ago to obtain wider coverage for a similar cost – our current Broker fees for D&O, Pension Trustees Liability & Employment Practices, is a fraction of this – would be happy to give you the name of my contact?
FTSE SMALL CAPsaid
We pay a flat annual fee to the brokers who then pass on the benefit of all commissions. This covers the entire broking service including our D&O cover.
FTSE SMALL CAPsaid
Our brokers charge a flat fee and waive any right to commission from the insurers.
FTSE 250said
We have never had the situation arise but, unless the advice related to particular personal circumstances of the director in question, I would anticipate it would be shared. With our current board, I would expect the matter to be aired with the board in advance anyway, unless it was particularly sensitive.
FTSE SMALL CAPsaid
The fee that your broker is proposing seems high. We have a premium spend through our broker of circa £250k and we pay a fee of £32500 and they get no commission on the placings. Our D & O premium is £19k for a high level of world wide cover incl USA so it may be worth looking at other placings. If you assume that the broker might get 10% commission on the premium then that should give you an idea of the fee levels.
FTSE SMALL CAPsaid
We arranged all our general insurances with the same broker and pay all premiums net of brokerage and then pay a fee for the insurance brokers services. Our total insurance spend is over £1m and the brokers fee is £60k. Make sure you question whether the broker takes any additional earnings from insurers over and above standard brokerage. I insist that all this is rebated too (which is another £15k). I am assuming you want a feel for D&O premiums. This will be part dependent on the limit of indemnity and risk, e.g. if you have ADR’s or signifcant US exposure this will atttract more premium. You will see the things the underwriter considers from a standard proposal form. We carry £10m limit of indemnity and pay circa £20k premium net. Further excess layer of £10m at circa £10k net.
EX LISTEDsaid
We do not pay by class of insurance but pay an overall fee of £100k on a total premium spend of c£1.35m of which D&O is c£33k but are a private group and so our risk rating will be lower.
EX LISTEDsaid
Our brokers charge a flat fee for provision of all our corporate insurances (including D&O, although this is placed by a separate office) and general support during the year. We are also aware that they do earn commission on the insurances placed & I would recommend querying this with your brokers. We ensure that we get a lot of value added services for that fee.
We do not pay a fee
It depends. If this is a standalone policy and not part of a bigger corporate spend then it is about right. Depends on geographies covered esp if in US and nature of the business.
We pay an annual fee to both our UK and US brokers. This includes renewal services together with other services, such as certain claims handling and other one off projects. Insurance placement fees are never charged seperately to us.
Generally they tend to be based on the level of indemnity covered. A general “rule of thumb” would be c. 10% of overall levels of indemnity. We moved our Brokers from Manchester to London some years ago to obtain wider coverage for a similar cost – our current Broker fees for D&O, Pension Trustees Liability & Employment Practices, is a fraction of this – would be happy to give you the name of my contact?
We pay a flat annual fee to the brokers who then pass on the benefit of all commissions. This covers the entire broking service including our D&O cover.
Our brokers charge a flat fee and waive any right to commission from the insurers.
We have never had the situation arise but, unless the advice related to particular personal circumstances of the director in question, I would anticipate it would be shared. With our current board, I would expect the matter to be aired with the board in advance anyway, unless it was particularly sensitive.
The fee that your broker is proposing seems high. We have a premium spend through our broker of circa £250k and we pay a fee of £32500 and they get no commission on the placings.
Our D & O premium is £19k for a high level of world wide cover incl USA so it may be worth looking at other placings. If you assume that the broker might get 10% commission on the premium then that should give you an idea of the fee levels.
We arranged all our general insurances with the same broker and pay all premiums net of brokerage and then pay a fee for the insurance brokers services. Our total insurance spend is over £1m and the brokers fee is £60k. Make sure you question whether the broker takes any additional earnings from insurers over and above standard brokerage. I insist that all this is rebated too (which is another £15k). I am assuming you want a feel for D&O premiums. This will be part dependent on the limit of indemnity and risk, e.g. if you have ADR’s or signifcant US exposure this will atttract more premium. You will see the things the underwriter considers from a standard proposal form. We carry £10m limit of indemnity and pay circa £20k premium net. Further excess layer of £10m at circa £10k net.
We do not pay by class of insurance but pay an overall fee of £100k on a total premium spend of c£1.35m of which D&O is c£33k but are a private group and so our risk rating will be lower.
Our brokers charge a flat fee for provision of all our corporate insurances (including D&O, although this is placed by a separate office) and general support during the year. We are also aware that they do earn commission on the insurances placed & I would recommend querying this with your brokers. We ensure that we get a lot of value added services for that fee.