Insurance buyers, wary of any return to the days when lucrative contingency fee deals prompted the big national brokers to rig bids and steer accounts, are speaking out against the newest compensation proposals being offered by selected insurance carriers. Independent agents lumped in with their bigger brothers are going ballistic over the criticism. Are risk managers overreacting?
That's the big question arising from the latest brouhaha involving producer compensation. Click here for the full story in this week's NU, and here for agent/broker association reaction–although I am eager to hear from the rank and file.
Without having seen the proposed supplemental compensation plans in question, it's hard to react, but my gut tells me that the customer is always right, and if insurance buyers are not comfortable with these deals, the big brokers are probably better off not accepting them.
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