Millenium
ICBA

Full Disclosure Statement

To our clients:

Millennium CreditRisk Management Limited is an independent insurance brokerage specializing in credit and political risk insurance. We believe that our independence is an important factor in protecting your best interests as a client.

We also believe that you are entitled to full and open disclosure about how we are compensated and circumstances that might give rise to a potential conflict of interest in the placement of your credit and political risk insurance policy with a particular insurance company.

Overall, there are eight different areas where an insurance brokerage could face a potential conflict of interest. We have addressed each area in the following paragraphs:

  1. DIRECT OR INDIRECT OWNERSHIP INTEREST OF ANY KIND IN A BROKERAGE BY AN INSURER, OR IN AN INSURER BY A BROKERAGE. Millennium is affiliated with The Guarantee Company of North America, Cowan Insurance group and the Frank Cowan Company Limited through common ownership. Each of these companies operates under separate management.
  2. COMMON OWNERSHIP OF A BROKERAGE AND AN INSURER BY A FINANCIAL CONGLOMERATE OR OTHER HOLDING COMPANY OR GROUP OF COMPANIES. Millennium is affiliated with The Guarantee Company of North America, Cowan Insurance group and the Frank Cowan Company Limited through common ownership. Each of these companies operates under separate management.
  3. A LOAN, CREDIT FACILITY OR OTHER FINANCIAL RELATIONSHIP WITH AN INSURER, DIRECTLY OR INDIRECTLY. Millennium deals with the HSBC Bank of Canada for its banking needs. There are no loans, credit facilities or other financial relationships with any insurance company.
  4. A FINANCIAL OR NON-FINANCIAL NETWORK AFFILIATION WITH AN INSURER. Millennium does not belong to any such networks.
  5. EXCLUSIVE CONTRACT WITH AN INSURER. Millennium does not have any such contract with any insurer.
  6. VOLUME OR MIX OF BUSINESS REQUIREMENTS. Millennium has no restrictions placed upon us by any insurer with regard to volume or mix of business.
  7. RECEIPT OF OTHER COMMISSIONS. Millennium does not receive commissions as a result of profit-sharing agreements with insurers.
  8. SALES INCENTIVES. Millennium does not accept or allow its employees to receive any sales incentives offered by any insurers.

OUR BROKERAGE COMPENSATION

Commissions

Brokerage commission is a part of most insurance premiums. The commissions paid by credit and political risk insurers are fairly standard but may vary according to type and classification of insurance policy: Credit insurance policies ranges from 10-17.5%, and Political Risk from 15-17.5%.

This commission percentage is paid annually for both new business and renewals. Overall, the average commission across our book of business is about 15%, out of which we must pay salaries, sales commissions, and other operating costs of doing business.

For your information, we have listed below the majority of Insurers we represent:

  • Atradius
  • Chartis Insurance Company of Canada
  • Executive Risk Services Limited
  • Euler Hermes Canada
  • Chubb Insurance Company of Canada
  • COFACE
  • Guarantee Company of North America
  • Export Development Canada
  • Zurich Canada

FEES:

In some cases, we receive no commission at all from an insurer, and we must charge a fee for services rendered to you. If we do receive a commission from an insurer, and also find it necessary to charge a fee because of other expenses in handling your file, then we have a professional obligation to fully disclose to you the full compensation.

OTHER COMMISSIONS:

In order for us to maintain strong relationships with quality insurers, we work with each to provide the type of business they desire. The Insurers with an asterisk noted in the table recognize our efforts through a profit-sharing contract. Payment of this profit-sharing commission may be contingent upon on a combination of growth, profitability (loss ratio), volume, retention and increased services that we provide on behalf of the Insurer. This additional compensation is not guaranteed, nor is it applicable to any one policy. Canadian Insurance Companies now post details of these plans on their corporate websites.

SUMMARY

At Millennium CreditRisk Management Limited, we purchase insurance products and services on your behalf that are available and affordable in the current marketplace. Our role is to provide you with the best insurance value that combines coverage, service, and price. We also provide personalized, quality service that includes professional insurance advice, ongoing policy maintenance and claims support. When any issue arises regarding your insurance coverage, we are your advocates, using our professional experience to best represent your individual interest.

If you have any questions regarding this or any other aspect of your insurance please contact us.

Millennium CreditRisk Management Limited

Mark R. Attley President