Who Pays The Piper?
By nature, risk managers are a risk-averse bunch. They are low key, tend to fly under the radar, and go out of their way to avoid controversy. This might explain the glacial pace at which they have responded to the questions raised by broker contingency fee deals with insurers.
It's been the industry's "dirty little secret" for years now that agents and brokers strike side deals with insurers to get bonuses or higher commission rates in return for delivering a certain volume or quality of business. Yet corporate insurance buyers have been slow to react to the practice, which in theory gives a broker an incentive to steer a client astray if it means increasing their income.
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