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, ...
Insurance Journal is not responsible for the content of the message below.
Subject: RE: Wharton Study Biased Like All Industry Sponsored Studies
Posted On: June 10, 2005, 7:41 am CDT
Posted By: JPS
Comment:
I don’t see how this study could be biased â€" they asked academics, with no tangible exposure to the industry, to find a way to support the sponsor’s notion that hidden intermediary compensation tied to higher premiums and lower claim payments are actually good for insurance buyers. Next thing they’ll be sponsoring a study that supports the belief that intermediaries are professionals owing the insurance buyer a fiduciary duty. Caveat emptor!
Subject: RE: Wharton Study Biased Like All Industry Sponsored Studies