Placement fees, which are rewards from the insurance carriers paid simply for putting a piece of business with them, create a conflict of interest. HNI does not accept placement fees.
Profit sharing incentives, also known as contingent income, are based on the profitability of a broker’s book of business with a carrier and serve to make the broker even more proactive in trying to reduce our customer’s long-term total cost of risk.
In addition to front-end commissions that HNI typically receives as a percentage of insurance premiums, HNI may earn contingent commissions from individual insurance carriers for whom we act as agents. For HNI’s Property and Casualty Division, contingent income is based primarily upon underwriting profitability and/or premium volumes aggregated for all HNI clients with that carrier. For our Employee Benefit Division, contingent income is based primarily upon membership growth.