Failure on broker commissions.The incoming president of the Risk and Insurance Management Society Risk and Insurance Management Society, Inc. (RIMS), founded in 1950, is a membership-based industry trade group, representing nearly 4,000 industrial, service, nonprofit, charitable, and governmental entities and serves more than 10,000 risk management professionals around the Inc. has warned that regulators are bound to step in if the insurance industry fails to agree on a new distribution model in the wake of the controversy over broker contingent commissions Contingent commissions is a term used in the American insurance industry for any kind of broker's commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In the UK this form of payment is known as Overriders. . "What we have done is challenge our membership," Ellen El·len , Mount A peak, 3,514.2 m (11,522 ft) high, of southern Utah. Vinck said "It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have the risk managers who have to get out there and make their views known." One thing she said she knows, drawn from a meeting of senior risk managers, is they agree that compensation for brokers should come only from one source, and that source should be the risk managers, who are the brokers' clients. Speaking as a risk manager herself, Vinck said she didn't did·n't Contraction of did not. didn't did not didn't do mind compensating brokers but wanted to pay a fair price for the value they give. "And I want them to represent me and only me in the marketplace, and let's get rid of that conflict of interest," she said. Vinck is vice president of risk management at United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Marine Repair Inc. She noted that the relationship between risk managers and brokers long has been built on trust. "That's why so many of us have been hurt," she said, referring to the failure of brokers to give full disclosure of all of their commission arrangements. Vinck said the controversy over contingent commissions has been swirling solely around brokers, yet it was carriers that instituted these commissions. "They're remaining quiet," she said of the insurance companies. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion