Agents groups have issued strong criticism of comments by a risk manager's group that called for the elimination of agent contingent commissions due to what it termed an inherent conflict of interest in the fees.
The Risk and Insurance Management Society Inc. issued a statement Wednesday that was roundly critical of brokers who might be considering taking contingent commissions after promising they would not. It was also critical of the carriers' promotion of compensation models that would promote contingent payments.
In an interview with National Underwriter, Terry Fleming, a RIMS director and director of the division of risk management for Montgomery County, Md., said that the plans carriers are putting forward can be manipulated. Because of that, insurers should come up with a different model.
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