CUMIS General Insurance Company

Compensation to Insurance Intermediaries

CUMIS General Insurance Company (CUMIS) has an arrangement with HB Group Insurance Management Limited (HB) to act as the Managing General Agent (MGA) for CUMIS. This means that CUMIS products available to consumers are sold through HB. CUMIS outsources all new business and policy management services to HB, and in turn HB receives a flat commission of 13.08% as MGA.  

Compensation for frontline HB Licensed Insurance Representatives (LIRs) is predominantly salary based with a small bonus component for acquiring new business. The bonus amount is based on the volume of sales per LIR and is tied to the adherence to CUMIS’ pricing and underwriting rules.

In addition to commission paid to HB, your credit union is paid compensation based on your insurance premium. Depending on the credit union, a compensation payment in the range of 1 to 5% is paid annually by CUMIS to credit unions participating in the Credit Union Insurance Services Home and Auto Insurance Program as reimbursement for costs incurred by them in generating new business and other administrative functions.

Contractually, a small number of credit unions as well as some independent insurance brokers could earn further compensation payments contingent on profitability. These payments are not guaranteed and depend on superior credit union and/or broker performance.

Ownership and other Financing Links to Intermediaries

CUMIS’ parent company, The CUMIS Group Limited, holds a 50% equity investment in CUMIS Services Limited which itself holds 50% equity interests in five insurance brokers and wholly owns one insurance broker in the province of British Columbia.

Subsidiary Companies

The CUMIS Group Limited has three wholly-owned insurance companies: CUMIS Life Insurance Company, CUMIS and CNS. In addition to the 50% ownership interest in CUMIS Services Limited referred to above, The CUMIS Group Limited holds a 50% ownership interest in Credential Financial Inc. which itself indirectly owns two life insurance agents, Credential Insurance Services Inc. and MemberCARE Financial Services Limited.