Innovative plan will accelerate more than $100 million in commission payments to eligible distribution partners, building on the company’s COVID-19 relief efforts
Image: Travelers to provide financial assistance to agents and brokers. (Credit: FreeDigitalPhotos.net/IndypendenZ.)
The Travelers Companies announced that it will accelerate commission payments to eligible agents and brokers to help them address the liquidity impacts of the COVID-19 crisis. In total, Travelers is accelerating more than $100 million, a significant boost of cash flow to its distribution partners when they need it most.
“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.”
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.”
The commissions being accelerated were accrued in the ordinary course of business during the quarter ended March 31, 2020, and accordingly, this program will not have a significant impact on the company’s results.
Source: Company Press Release