Dufferin Mutual Insurance Company

Broker Compensation

Dufferin Mutual Insurance Company's Relationship with Brokers and Broker Compensation explained:

The following information is provided in keeping with our ongoing practices of full disclosure and transparency:

Dufferin Mutual's products are available only from insurance brokers. Consumers are generally aware of the difference between buying through an insurance broker, who represents several companies, and purchasing from a single company through a captive agent or directly by phone. We distribute through insurance brokers because insurance consumers value choice and professional advice. We also believe that consumers get the best deal in terms of coverage and price. The most satisfactory experience over the long term is when an insurance broker is advising them and advocating their interests.

Our broker agreements require that your broker and Dufferin Mutual exercise the utmost diligence, honesty and good faith in performing their duties, in property and promptly servicing policies, and in our communications and dealings with policyholders.

We compensate brokers by paying your broker a fixed percentage of the premium you pay. This varies by type of business, as shown in the table below. We have the technical understanding and statistical evidence to know the premium that should be charged for certain types of business and we set prices to compete for that business.

Neither Dufferin Mutual nor the broker knows which policy will have a claim, so the objective is to have sufficient policies without claims to pay the claims of those that do.

Dufferin Mutual's priorities are to meet obligations to our policyholders. In addition to ensuring full entitlement to the coverage contracted when there is a claim, our responsibility to policyholders extends to prudent management of future costs so that pricing is stable and reasonable. This is essential for strong corporate governance and effective management. Insuring cars, homes and businesses that we price accurately is fundamental to meeting these commitments.

Our support of brokers allows them to continue to be successful in providing you with expert advice, choice and excellent service.

Line of Business

Base Commission

Estimated percentage of 2009 Total Written Premium

Automobile(except high risk and special purpose vehicles)

12.5%

38%

Property (includes home-owner, tenant, condo, farm and commercial policies)

15% - 20 %

56%

712 Main Street East, Shelburne, Ontario. Canada. L9V 2Z4
Tel: 519 925 2026 • Toll Free: 800 265.9115
Fax: 519 925 3357
email: info@dufferinmutual.com
© Dufferin Mutual Insurance Company 2012