How we get paid:
Cynosure Insurance Agency & Consultancy Services (Cyprus) Ltd (Cynosure) takes pride in the services our agency provides to you, our client, for insurance intermediation and other related services. For our efforts we are compensated in a variety of ways, primarily in the form of commissions and contingency amounts paid by insurance companies and, in some cases, fees paid by clients or third parties. The means by which we are compensated are described below.
Commission Income – Commission, normally calculated as a percentage of the premium paid to the insurer for the specific policy, is paid to us by the insurer for the distribution and servicing of your insurance policy. Our commission is included in the premium paid by you. The individuals at Cynosure who place and service your insurance may be paid compensation that varies directly with the commissions we receive.
Contingency Income – We also receive income through contingency arrangements with most insurers. They are called “contingent” because to qualify for payment we normally need to meet certain criteria, usually measured on an annual basis. Contingency arrangements vary, but payment under these agreements is normally the result of growing the business by attracting new customers, helping the insurance company gather and assess underwriting information, achieving certain loss or claims results and/or working to renew the policies of existing insureds. In other words, the amount of earned contingency income depends on the overall size and/or profitability of a group of accounts, as opposed to the placement or profitability of one particular insurance policy. For this reason, the individuals involved in placing or servicing insurance are rarely, if ever, compensated directly for the contingent income that we receive.
Fees Paid by Clients – On occasion, with more complex business insurance programs and where additional resources, products or services are appropriate, a fee may be negotiated for placement of insurance coverage or additional services. Fees charged for the placement of insurance will be outlined in a proposal and approved, usually in writing, prior to the insurer binding coverage. On occasion, we may receive both commissions and client-paid fees for placing insurance, which generally will be disclosed in writing to you in advance. In certain circumstances, clients pay us mutually agreed-upon fees for additional services, such as third-party administration of employee benefits programs.
Other Compensation and Benefits – We may receive revenue or further benefits in other ways, including, but not limited to, from insurance company promotional events, payments from insurers for promotional marketing and/or employee training and development, and fees paid to us for policy and/or claims administration and/or loss control services that we provide.
Customer Centric Carriers – We have access to the products and services of a considerable number of insurers; however, we believe our ability to provide the best combination of products, service, value and ongoing access to capacity is enhanced by focusing on a manageable number of carrier relationships.
Please feel free to ask any questions about our compensation generally, or as to your specific insurance proposal or placement, by contacting your Cynosure Agent or customer service representative directly, or by calling us at 00357-22253737.
We want you to choose Cynosure to be your insurance advisor – and we intend to make your decision an educated one.