Brokers Fear Fallout From Spitzers Fee Probe Three-quarters anticipate higher transparency requirements on compensation

Ongoing investigations of insurance business practices have brokers worried the fallout will create financial burdens for both clients and themselves, hurting smaller intermediaries the most, a consulting firm survey has found.

Indeed, brokers polled by New York-based Advisen Ltd. said they are reluctant to scrap the entire contingent commission structure, warning that smaller brokerswho are more reliant on such bonus feeswould suffer the most if companies drop incentive compensation plans.

Besides survey results, Advisen included the impassioned comments of some broker respondents on the topic that has roiled the industry since New York Attorney General Eliot Spitzer accused Marsh in a civil suit of taking kickbacks disguised as fees to rig bids and steer business to certain insurers.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.