Commission Summary Document
We, Azur Underwriting Limited part of the Azur Group, as intermediary (Managing General Agent) between your Broker, you (the consumer), and the product provider with whom we place your business.
The background
Pursuant to provision 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, must make available in their public offices, or on their website if they have one, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the intermediary which it has agreed with its product producers.
What is remuneration?
Remuneration is the payment earned by the intermediary for work undertaken on behalf of both the provider and the consumer. The amount of remuneration is generally directly related to the value of the products sold. Remuneration can comprise, commissions, fees, profit shares as well as non-monetary compensation.
What is commission?
Commission is payment that may be earned by an intermediary for work undertaken for both provider and consumer.
There are different types of commission models:
Single commission model
Where payment is made to the intermediary shortly after the sale is completed and is based on a percentage of the premium paid/amount invested/amount borrowed.
Trail/Renewal commission model
Further payments at intervals are paid throughout the life span of the product.
Indemnity commission
Indemnity commission is the term used to describe a commission payment made before the commission is deemed to be ‘earned’. Indemnity commission may be subject to a clawback (see below) if the consumer lapses or cancels the product before the commission is deemed to be earned.
Profit share arrangements
In some cases, the intermediary may be a party to a profit-share arrangement with a product provider and will earn additional compensation.
Profit Shares, where operative, are agreed with individual product providers on a case-by-case basis. The Profit Share will be based on the total profitability of the book for the product provider taking into consideration claims paid and the product provider’s total costs, including the aggregate commission paid to intermediaries. Profit Shares generally include provisions for loss-making years to be carried forward and offset against future profits.
Any business arranged with these product providers on a client’s behalf will be placed with the product provider because that product provider is at the time of placement, the most suitable to meet the client's requirements, taking all the client's relevant information, demands and needs into account.
Clawback
Clawback is an obligation on the intermediary to repay unearned commission. Commission can be paid directly after a contract is concluded but is not deemed to be ‘earned’ until after a specified period of time. If the consumer cancels or withdraws from the financial product within the specified time, the intermediary must return commission to the product producer.
Work Transfer Arrangements
Work transfer commissions are amounts earned by insurance intermediaries for performing additional tasks in relation to the distribution and administration of an insurance policy which are commonly performed by the insurer. In specific circumstances, we agree with Brokers that they will undertake activities normally performed by us. For undertaking these activities, we typically agree to pay them a percentage of premium.
Other Non-Monetary Benefits
Remuneration may also take the form of non-monetary benefits including but not limited to free attendance at events, help with promotional materials, etc. Azur has a comprehensive Conduct Framework, which includes a regularly reviewed Anti-Bribery and Corruption policy to ensure effective monitoring of any non-monetary benefits.
General insurance products
Azur only offers General insurance products, and no Life Assurance, Investments, Pension, Credit, or Mortgage Products. General Insurance includes motor, home, travel, health, or cyber insurance, which are typically subject to a single or standard commission model, based on the amount of premium charged for the insurance product.
Our commissions in Ireland are as follows:
Azur only offers General Insurance Products in Ireland, for which Intermediaries are remunerated under the Single Commission model, with no Trailing Commissions (‘Trails’) paid. The aggregate remuneration received by the Broker and Azur is set by and agreed by the product provider.
In accordance with our Anti-Bribery and Corruption Policy we neither receive Non-Monetary remuneration from product providers, nor do we pay it to Brokers.
| General Insurance Product | Home (incl. contents, collections, liability & travel insurance) |
Legal Expenses Cover |
|---|---|---|
| Product Provider | AIG Europe SA | DAS Legal Expenses Insurance Company Ltd |
| Single Commission* | ||
| Charged by Azur | 36.70% | 36.70% |
| Paid to Brokers | 24.70% | 24.70% |
| Retained by Azur | 12.00% | 12.00% |
| Azur Eligible for Profit Share? | Yes – 25% of insurer profit | No |
| Works Transfer Paid to Broker? | On exceptional basis | No |
* The above represents the general remuneration terms for a given product. Commissions paid to Brokers are agreed on a case-by-case basis and range from 0% to 30%. Broker may elect to waive their commission in exchange for a reduced premium and charge their clients a fee instead. Details of such fee arrangements Brokers have with their clients are not disclosed to us.