Brokers face conflict issues: is a hidden commission system conspiring against corporate insurance buyers?

Article Abstract:

The consolidation of the insurance brokerage market has compromised the position of insurance buyers. Their size has given brokers more negotiating power in setting higher commissions, limited buyer choice and collecting fees that the insurers and insureds may not be aware of. To fight against surreptitious insurance brokers, the New York Insurance Dept and the Risk and Insurance Management Society have issued policies requiring the disclosure of all forms of compensation by brokers. Hopefully, full disclosure would discourage brokers to ask for padded commissions and fees.

Sales Compensation, Ethical aspects, Sales management, Commissions (Compensation), Commissions (Fees), Compensation (Business)

You've lost that loving feeling

Article Abstract:

An increasing number of companies, including Fortune 500 firms, has expressed interest over large-scale insurance brokers who are believed to be the best in managing corporate risks. The trend on the other hand, has created supply shortages for talented insurance brokers. Despite the advantages offered by large insurance brokers, some firms have maintained their relationship with small-scale insurers who may be trusted with providing high-quality services.

Asset & Risk Management, Methods, Services, Risk management

The risk menagerie

Article Abstract:

A survey commissioned by Treasury & Risk Management showed American International Group of New York as the best insurer in therms of creative products and services, while Chubb Group of Insurance Companies was rated the best in terms of claims payment. The survey also asked respondents to characterize their insurers according to the traits of often associated with animals and showed Chubb Group as having characteristics akin to a zebra.

Cover Story, Surveys, Treasury and Risk Management (Periodical)