Brokers Should Disclose Contingency-Fee Deals.

National Underwriter Property & Casualty-Risk &Benefits Management | June 1, 1998 | Copyright

Risk managers' recent concern about contingency-fee arrangements between brokers and insurers highlights some of the real power issues that face the consolidating industry. But it also offers brokers an opportunity to reaffirm their commitment to their clients.

The main issue is not that some brokers have made deals with insurers to be paid for services the brokers perform for the marketplace. Often, brokers have used their expertise and contacts to break new ground in the market, and few would deny the importance of their role. Contingency-fee arrangements--in which ...

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