Keenan & Associates’ mission has been to provide high-quality, innovative products and services to meet the insurance and risk management needs of our clients for many years. Keenan often assists clients in developing joint powers authorities (JPAs) or other purchasing coalitions to aggregate the needs of clients and reduce costs. In connection with such programs, Keenan provides numerous types of services, including administration, consulting, underwriting, claims administration, safety inspections, eligibility assessments, financial processing and reporting. Keenan is compensated for these types of services pursuant to specific written agreements with the individual client or group.
Keenan also offers consulting services to assist clients in reviewing their insurance options. When Keenan is asked to obtain proposals for insurance and/or reinsurance coverage, Keenan obtains quotations from appropriate insurers with coverage for the types of risks involved. Keenan is typically compensated for its brokerage services through commissions paid by the insurers, the cost of which may be included as part of the insurance quotations and may impact the pricing that Keenan is able to obtain for its clients. In some cases, Keenan may also enter into written agreements with clients to provide insurance brokerage services for a fee, such that Keenan may receive compensation from the insurer and/or the insured.
It is a long-standing practice in the insurance industry for insurers to establish additional compensation programs for brokers based on factors that are not specific to a particular client or placement of coverage. These arrangements are typically referred to as overrides, contingencies or indirect compensation (collectively, “Other Compensation”). Keenan may from time to time enter into arrangements for Other Compensation based upon: (i) technology investment and services provided by Keenan, (ii) assistance with developing, marketing and/or distributing products offered by insurance carriers and product vendors, (iii) specialized expertise in niche markets that may assist insurers to properly assess market risks and to develop products, (iv) efficiencies that may be achieved through the collective administration of larger groups of business, and (v) aggregate volume, persistency or new business development. Keenan believes and seeks written assurances from insurers that any such Other Compensation does not adversely impact the pricing and coverage terms that Keenan is able to obtain for its clients.
Keenan embraces industry efforts for transparency and believes it is important that clients have access to information that may be relevant to their choice of insurance products and services, such as (i) the terms of coverage and services that are offered, (ii) the cost of such insurance and services, (iii) the reported financial viability of insurers, and (iv) compensation that may be directly or indirectly paid to Keenan in connection with the products or services that are selected. Clients that have questions regarding any of these items or that desire additional information are encouraged to contact their Keenan account representative to discuss in more detail.