The insurer unveiled a new “Distribution Support Plan” plan to accelerate more than $100 million in commission payments to eligible distribution partners as part of the company’s COVID-19 relief efforts
Taking an innovative approach to help its agent and broker partners, the Travelers Companies, Inc. announced Sunday, April 5th that it will be accelerating commission payments to eligible agents and brokers in order to help these partners address potential liquidity impacts as a result of the COVID-19 crisis.
“As so many are facing a significant financial burden due to the COVID-19 pandemic, we want to show our agent and broker partners, many of whom are small business owners, our support at this challenging time,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “Independent agents and brokers not only provide invaluable counsel and care to our customers but also play a critical role in the U.S. economy, and we are committed to standing by them.”
In total, the Harford-based insurer says that more than $100 million will be accelerated, providing a significant boost of cash flow to its distribution partners when they need it most.
In response to the announcement, Bob Rusbuldt, President and Chief Executive Officer of the Independent Insurance Agents & Brokers of America, said, “Travelers has always been the premier supporter of independent agents and brokers, and the Travelers Distribution Support Plan takes that support to a whole new level. We want to thank Travelers for their continued industry leadership.”
According to the terms of the plan, the commissions being accelerated were those that had already accrued in the ordinary course of business during the quarter ending March 31, 2020. As a result of the move, its broker and agent partners will receive these commissions avoiding potential liquidity problems while avoiding any significant impact on the company’s overall financial results.
