History and amounts of allowances since 1991.
The Servicing Carrier Allowance (SCA) compensates a servicing carrier for the expenses it incurs in processing residual market pool business. These expenses include: loss adjustment, general, other acquisition, taxes and assessments, and contingencies and return. Producer fees (commissions) are directly paid by the Pool, and hence, not included in the SCA. SCA’s are generally payable on “collected” premium only (gross premium less uncollectible premium).
| Effective | Percent |
|---|---|
| 01/01/1991 | 26.00% |
| 01/01/1992 | 25.00% |
| 01/01/1993 | 24.40% |
| 01/01/1994 | 24.10% |
| 01/01/1995 | 21.40% |
| 01/01/1996 | 21.50% |
| 01/01/1997 | 23.79% |
| 01/01/1998 | 23.79% |
| 04/01/1999 | 27.70% |
| 01/01/2000 | 27.70% |
| 01/01/2001 | 29.41% |
| 01/01/2002 | 25.73% |
| 01/01/2003 | 25.46% |
| 01/01/2004 | 25.61% |
| 01/01/2005 | 24.29% |
| 01/01/2006 | 24.29% |
| 01/01/2007 | 24.65% |
| 01/01/2008 | 23.14% |
| 01/01/2009 | 23.91% |
| 01/01/2010 | 24.04% |
| 01/01/2011 | 22.97% |
| 01/01/2012 | 22.97% |
| 01/01/2013 | 22.97% |
| 01/01/2014 | 19.63% |
| 01/01/2015 | 19.63% |
| 01/01/2016 | 19.63% |
| 01/01/2017 | 18.69% |
| 01/01/2018 | 18.69% |
| 01/01/2019 01/01/2024 | 18.69% 18.84% |
Current Servicing Carriers
Effective 1/1/2024, the ICRB awarded 4 carriers the following percentages after completing the bid process:
- LM Insurance Corporation (Liberty Mutual Group) – 40%
- Accident Fund – 15%
- Old Republic – 15%
- Travelers Property Casualty Co Of America (Travelers Group) – 30%
Based on the bids, the estimated weighted average SCA is 18.84%.** Note that the ultimate weighted average SCA will change from year to year due to the variable aspect of the policy count and premium volume. The SCA is a combination of a flat policy fee, and a percentage of final net premium collected, based upon policy count and premium volume.
