It’s great to know that the industry has found a variety of ways to offset the missing contingent commissions, although, it has come at the expense of the client. Which will ultimately require the industry to become client sensitive. And therefore, create a competitive environment which not all brokerage houses will be able to compete in. We’ll need wait and see who can withstand this type of business environment.
I would like to know what the insurance companies are now going to do with the money that would have gone to contingency commissions? Are they going to raise commission levels? Are they going to return the amount to policyholders in the form of dividends or lower premiums? My guess is now they will provide higher commissions to the brokers that strong arm them (Marsh has a history of this, don’t they?) into paying them more in exchange for steering the business their way.
Mr. Spitzer is re-inventing how insurance professionals make a living. Agents and FAs need to understand that Estate Tax Repeal is on its way and that full disclosure will also take place. The secondary market for life insurance ( Senior Life settlements ) while not a panacea is going to futher itself into mainstream and agents will offset their lost income through this new business channel…
It’s great to know that the industry has found a variety of ways to offset the missing contingent commissions, although, it has come at the expense of the client. Which will ultimately require the industry to become client sensitive. And therefore, create a competitive environment which not all brokerage houses will be able to compete in. We’ll need wait and see who can withstand this type of business environment.
I would like to know what the insurance companies are now going to do with the money that would have gone to contingency commissions? Are they going to raise commission levels? Are they going to return the amount to policyholders in the form of dividends or lower premiums? My guess is now they will provide higher commissions to the brokers that strong arm them (Marsh has a history of this, don’t they?) into paying them more in exchange for steering the business their way.
Mr. Spitzer is re-inventing how insurance professionals make a living. Agents and FAs need to understand that Estate Tax Repeal is on its way and that full disclosure will also take place. The secondary market for life insurance ( Senior Life settlements ) while not a panacea is going to futher itself into mainstream and agents will offset their lost income through this new business channel…