Posted On: January 24, 2005, 4:55 pm CST

Posted By: Jack J Maniscalco

The thing I find amazing is that the companies, for whom Mr Sptizer has started his crusade, usually have a well-paid risk manager on board. In addition, a couple of well-paid comptrollers, and CEOs. Aren't those folks supposed to be smart enough to make a decision that what they are paying for their insurance is fair?

Mine is a small retain agency, split about 70/30 commercial/personal. I would venture to guess that most of my clients realize I must get paid for serving their insurance needs, whether as broker or agent. They make the decision if the pricing is fair. In the glorious Empire State (NY), our Insurance Dept. mandates the completions of specific forms when placing in the E&S markets. One of which states the total cost of the insurance. It does not state the commissions involved, but the amount of real dollars the insured is spending.

I have told clients what I am paid at times. It depends on the circumstance. Essentially, I tell them I cannot work for free. Even the most unsophisticated buyer realizes that.

In my opinion, this whole magilla was just the impetus for someone's run for Governor.