Broker/Agent Compensation

Broker/Agent Compensation

November 15, 2004

Insurance intermediaries, their valuable role in the market and how they are compensated is the subject of a new background paper by the Insurance Information Institute (I.I.I.). Titled “Background on Insurance Intermediaries”, the paper explains clearly and simply who brokers and agents are, how they are compensated for the services they provide, the nature of their role in the market and the ways in which insurance buyers benefit from their function. The paper is accompanied by an update on the actions taken against certain firms by New York Attorney General Eliot Spitzer. As a result of the Attorney General’s investigations, several leading insurance brokers and a few insurers have announced that they will not be making contingent commission payments going forward. Others are examining their compensation structures, and have yet to determine whether they will seek to retain incentives tied to the overall financial success of their broker relationship.

Click on the links below to download:

 

Background on Insurance Intermediaries

Download/View File: Word file (1238 K)

 

Timeline and Chronology of Events and Issues

 

 

Download/View File: Word file (108 K)

 

Analysis of the Consumer Federation of America Report on Contingent Commissions

 

Download/View File: PDF file (71 K)