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.