Distribution

Our insurance products and services are available to the public through two types of insurance intermediaries: Brokers and Managing General Agents. We maintain a nationally distributed field office structure, which enables us to work closely with these insurance professionals. HSB Canada supports the intermediary distribution system and does not sell insurance products directly to the public.

Our insurance products and services are also available through contractual arrangements we have with other Insurers we call our "Client Companies". We provide these companies with services such as product design, underwriting, marketing, training, loss prevention and claims management.

HSB Canada provides a host of engineering and consulting services (non-insurance) to business, institutions and industrial concerns. We assess the condition of machinery and equipment to help identify opportunities for improvement.

Compensation to Brokers and Managing General Agents (MGA) is by way of commission, which is a percentage of the overall policy premium. The level of commission we pay ranges from 0% to 25%, the majority of which is paid within the range between 15% and 20%.

HSB Canada has also agreed to contingent commission arrangements with a few selected MGA's and Brokers in Canada. In 2003 2010 the total amount paid was less than 1% of our total net written premium. Contingent commissions are typically based upon a combination of growth and profitability.