Brokers Fear Fallout From Spitzers Fee Probe

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.