Among insurance brokers, two distinct business models have emerged–those who earn contingent commissions, and those who do not–and not necessarily by choice, thanks to settlements struck by regulators and prosecutors with mega-brokerages to close the books on allegations of bid-rigging and contingency fee abuse.

This reality has had a profound effect on the earnings and operations of the four mega-brokerage firms, prompting a revamping of compensation systems presented to risk managers shopping for services. However, brokerage executives say the debate shouldn’t just be about price, but focus on the relative value clients receive.

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