City Insurance Brokers and Compass launch PCCP

24 May 2018: City Insurance Brokers Ltd in association with Compass Underwriting (Compass) have launched what is believed to be one of the first catastrophe profit protection schemes - Profit Commission Coverholder Protection (PCCP). Aimed at managing general agents (MGAs) and brokers with delegated binding authorities, the scheme indemnifies the Coverholders’ profit commissions against being reduced by a single large loss, up to the selected limit of indemnity. Andrew Briant, Compass Underwriting’s Managing Director said: “In simple terms, PCCP can remove a single large loss from the profit commission calculation.  It is similar in concept to insurers purchasing catastrophe reinsurance.”

“MGAs often base their business model around the risk commission covering the operating costs, and profit commissions forming the profit of the business. PCCP is a particularly good match for this type of MGA especially where the MGA may not be aligned in terms of reinsurance protection purchased by their capacity, and yet still has to contribute towards the insurer’s operating costs.  Deficit clauses can then destroy the on-going profit share arrangements even though the underlying insurer may have been reinsured.”

“PCCP ensures that the MGA can protect a portion of their catastrophic exposure without concerns being raised over the quality of the underlying underwriting of their business.”

Speaking about PCCP, David Goodley, the CEO of City Insurance Brokers said: “Having worked as a compliance consultant for numerous small MGAs, I have seen both the benefit and extreme difficulties that profit commissions bring.”

“The benefits from years of careful underwriting can be wiped out in an instant by a single large loss. PCCP enables those distributing or underwriting to remove this potential and secures the ongoing benefits of their disciplined and careful underwriting.”

PCCP has been underwritten by certain international A rated (re)insurers.




For more information, contact:

Matt Beasley:, 020 7264 7887

Alex Wise:, 020 7264 7887


Notes to Editors:

About Compass Underwriting:

Originally a Lloyd’s syndicate, Compass has evolved since 1986 to become one of the UK’s leading independent Accident & Health underwriting agencies.  Accessing a wide range of UK, European and Lloyd’s markets, Compass provides a full-cycle service to its client group. Compass incubates new businesses, providing all the services needed to help launch into niche sectors.

Compass is authorised and regulated by the Financial Conduct Authority under Firm Reference No.304908 and is a member of the British Insurance Brokers Association and the Managing General Agents’ Association.