AON was one of the Mega Brokers who obviously caused the diminishment of Profit sharing. Did the smaller brokers have any phase in period when there income was chopped? Lets not all sit around and feel sorry for AON while some of the blame lies at their feet. Most smaller agencies have lost profit sharing on an increasing number of lines, and the proximate cause of that was the illegal and unethical acts of a few Mega brokers. The only perverse result is that agents who have acted in a moral and ethical manner are now being lectured on the ethical nature of transparency by the very Mega Brokers who abused their clients.
I have zero sympathy for AON. But the fallout for smaller agencies is undeniable. I can’t believe that large commercial clients didn’t get competitive pricing/service with our industry being as entrepreneurial as it is. I just resent the gov’t sticking their noses in business when so few of the career politicians have never really worked in the private sector and see everything through their social do-gooder looking glass.
Check your facts before you make sweeping statements with regard to ” smaller agencies have lost profit sharing..”!!! Per AM Best 2007 – contingent income paid to brokers/agents increased by $200mm year over year post spitzer – How do you explain the “Mega Brokers” halting contingents and the overall payout increase?
As you probably already know many of the companies that eliminated profit sharing to move toward supplemental commissions boosted the first year pay out to their agency force, and as we are seeing in years two, three and into the future they have been cutting their total payout and I do not anticipate this pattern to change. Reality does bite.
Can someone please tell me how government thinks destroying our business protects large commercial consumers?
AON was one of the Mega Brokers who obviously caused the diminishment of Profit sharing. Did the smaller brokers have any phase in period when there income was chopped? Lets not all sit around and feel sorry for AON while some of the blame lies at their feet. Most smaller agencies have lost profit sharing on an increasing number of lines, and the proximate cause of that was the illegal and unethical acts of a few Mega brokers. The only perverse result is that agents who have acted in a moral and ethical manner are now being lectured on the ethical nature of transparency by the very Mega Brokers who abused their clients.
I have zero sympathy for AON. But the fallout for smaller agencies is undeniable. I can’t believe that large commercial clients didn’t get competitive pricing/service with our industry being as entrepreneurial as it is. I just resent the gov’t sticking their noses in business when so few of the career politicians have never really worked in the private sector and see everything through their social do-gooder looking glass.
Check your facts before you make sweeping statements with regard to ” smaller agencies have lost profit sharing..”!!! Per AM Best 2007 – contingent income paid to brokers/agents increased by $200mm year over year post spitzer – How do you explain the “Mega Brokers” halting contingents and the overall payout increase?
As you probably already know many of the companies that eliminated profit sharing to move toward supplemental commissions boosted the first year pay out to their agency force, and as we are seeing in years two, three and into the future they have been cutting their total payout and I do not anticipate this pattern to change. Reality does bite.