The recent announcement that Arthur J. Gallagher, one of the world’s largest brokers, has received permission to receive contingent commissions from insurers once more was met with both positive and negative comments from within the commercial insurance community.

Insurance brokers are applauding the announcement as a way to level the playing field, but risk managers and their leading association have condemned the development.

Contingent commissions are most often paid to insurance brokers or agents by carriers based on total volume of premiums produced by the broker/agent and placed with a particular carrier.

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