Westwood receives compensation through several arrangements for the insurance coverages and services it arranges. This statement describes them.
Westwood receives usual and customary brokerage commissions or fees (and occasionally fees in addition to commissions), along with potential investment income on fiduciary funds. Related parties may also earn commissions and fees.
Westwood may also participate in contingent commission arrangements with insurance companies for additional compensation based on underwriting, profitability, volume, or retention goals — arrangements that could create an incentive to favor certain insurers.
Some insurers have increased commission rates for Westwood through supplemental commissions. These differ from contingent commissions in that they are determined without performance contingencies.
Westwood may participate in insurance company promotional events, or training and development that insurers provide.
Westwood gathers client data and analytics to improve its understanding of the marketplace, and may provide this data to insurers under consulting agreements that generate fees.
Clients with questions about the compensation received by Westwood and its affiliates in relation to their insurance placements should contact their Westwood representative.