Posted On: May 16, 2007, 7:57 pm CDT

Posted By: Melanie

Statement of Alex Soto
Senate Committee on Governmental Affairs
"Oversight Hearing on Insurance Brokerage Practices, Including Potential Conflicts of Interest and the Adequacy of the Current Regulatory Framework"
November, 16 2004


Good morning Chairman Fitzgerald, Ranking Member Akaka, and Members of the Subcommittee. My name is Alex Soto, and I am pleased to be here today on behalf of the Independent Insurance Agents & Brokers of America (IIABA) and to provide my association's perspective on broker compensation issues that are the focus of this hearing. I am an officer of the IIABA and have served on our national association's Executive Committee for over three years. I am also President of InSource, Inc., a Miami-based independent agency that offers a broad array of insurance products to consumers and commercial clients in South Florida and beyond.



IIABA is the nation's oldest and largest trade association of independent insurance agents and brokers, and we represent a nationwide network of more than 300,000 agents, brokers, and employees. IIABA represents independent insurance agents and brokers who present consumers with a choice of policy options from a variety of different insurance companies. These small, medium, and large businesses offer all lines of insurance – property, casualty, life, health, employee benefit plans, and retirement products.



IIABA's Reaction to the Marsh Investigation



IIABA condemns in the strongest possible terms bid-rigging, marketplace manipulation, and other anti-competitive conduct, and we are outraged by those who have engaged in illegal practices and tarnished the image of our great industry in the process. We applaud the efforts of state insurance regulators, attorneys general, and other law enforcement officials to swiftly identify and bring to justice anyone proven guilty of these unlawful activities. No system of regulation and oversight will ever prevent all determined bad actors from breaking the laws of the land, but we are extremely pleased state officials are acting aggressively and in a coordinated manner to restore the public's trust in the insurance industry. It is our hope that all individuals who have engaged in this conduct will be punished to the fullest extent of the law. ( Okay good go after State Farm)