Trust is at the heart of the insurance agent/broker-client relationship. In the long run, the most important consideration an insurance producer has is to secure the coverage that best meets the needs of the client with the right terms and the right price. In order to achieve that, the producer needs to build the relationship on trust and competence.
If a client wants to know about the producer's compensation to achieve that trust, then we believe the client should ask and the producer should tell. If for some reason the producer doesn't want to tell, then the client has the option to go to someone who will. Consumers are smart and know this.
We believe there is no need to create and mandate a burdensome and confusing disclosure regime to regulate this transaction. The fact that the New York State Insurance Department will now subject more than 100,000 licensed producers to its unreasonable terms when only a handful of brokers have ever been found by the department to have engaged in improper “steering” makes for government decision-making at its most arbitrary.
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