Transparency & Disclosure

We are committed to disclosing our roles and interests in insurance transactions, including the type of compensation we may receive. We are compensated in a variety of ways, including commissions and fees paid by insurance companies and fees paid by clients. Sonnensee may receive compensation through one or a combination of the methods listed below in accordance with local law and regulation.

Retail Commissions: A retail commission is paid to Sonnensee by the insurer as a percentage of the premium charged to the insured for the policy. The amount of commission may vary depending on a number of factors, including the type of insurance product sold and the insurer selected by the client. Retail commission rates can vary from transaction to transaction.

Client Fees: Some clients may agree to pay Sonnensee a fee for Sonnensee’s services in lieu of, or in addition to, retail commissions paid by insurance companies. The fee may be collected in whole or in part through the crediting of retail commissions collected by Sonnensee for the client's placements.

Insurer Consulting Compensation: Sonnensee receives compensation from some insurers for providing consulting, data analytics or other services. The services are designed to improve the product offerings available to our clients, assist insurers in identifying new opportunities, and enhance insurers’ operational efficiency. The scope and nature of the services vary by insurer and by geography.

Contingent Commissions: Some insurers agree to pay Sonnensee contingent commissions when we meet set thresholds for insurance policies placed with them during a given year or other time period. The set thresholds may include volume, profitability, retention and/or growth metrics. The amount of contingent commission earned may vary depending on factors relating to an entire book of business over the course of the year or period. As a result, the amount of contingent commission attributable to any given insurance policy typically will not be known at the time of placement.

Compensation for Insurer Administration and Other Services: Sonnensee operates certain panels, facilities, quota shares, line slips and other placement arrangements with insurers. Sonnensee receives separate compensation relating to the creation, management and operation of these arrangements that is in addition to any other fee or commission earned by Sonnensee.

Other Benefits or Compensation: Sonnensee may, from time to time, participate in insurance company promotional events or employee training and development provided by insurers. Sometimes, Sonnensee is reimbursed by insurers for its costs related to promotional marketing. Where legally permitted, Sonnensee earns interest and other income on premium accounts, as paid to us by the financial institutions where insurance premiums are held prior to remittance to insurers.