AIA-funded study says bonus system might stimulate competitive bidding

Contingency commissions, when administered properly, can actually benefit clients, say two academics from the Wharton school in Philadelphia, but an industry critic dismissed the report as "bogus."

In their report–"The Economics of Insurance Intermediaries"–Professors J. David Cummins and Neal A. Doherty, both with the Wharton School at the University of Pennsylvania in Philadelphia, contend that contingent commissions are not necessarily bad, and can benefit the industry.

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