Wharton Study Finds Agents, Brokers Play Critical Role in Buying Process
National News • June 8, 2005
Profit-based contingent commissions align the interests of independent agents and brokers and the insurer so that correct pricing of policies is achieved, thereby alleviating adverse selection, ...
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Subject: RE: The Good the Bad and the Ugly
Posted On: June 9, 2005, 1:16 pm CDT
Posted By: Don P
Comment:
(1) Bid rigging is a direct result of the way compensation is structured in insurance sales/renewals. The conflict of interest inherent in the system begs for bid rigging. The only way to stop it is to eliminate this conflict in insurance compensation. Contingents are just one part of the problem. There must be a paradigm shift in the way brokers are compensated. It will make the playing field fairer for all the smaller brokers and larger brokers.
(2) Spitzer's work actually benefits the conscientious small broker (I count myself among them) by drawing attention to the unethical bullying tactics and bid rigging of the large brokers.
(2)
Subject: RE: The Good the Bad and the Ugly
(2) Spitzer's work actually benefits the conscientious small broker (I count myself among them) by drawing attention to the unethical bullying tactics and bid rigging of the large brokers.
(2)