The Risk and Insurance Management Society (RIMS) issued a statement today calling for insurers to pull back their new bonus compensation plans for brokers and asking risk managers to push their brokers for transparency, concerning fees.

While RIMS has issued previous statements concerning broker compensation, “this time we brought the insurers into the mix,” said Terry Fleming, a RIMS director and director of the division of risk management for Montgomery County, Md.

He told National Underwriter RIMS is concerned that the carriers are pushing “a compensation model when it's fraught with issues.” He mentioned points that were brought out in investigations by the New York Attorney General's Office and other authorities revealing that insurers paid brokers hidden fees as rewards for steering and bid-rigging.

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