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>Producer comp. disclosure update
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Don Pachner
Mar 23, 2009 - 2:30 PM

I am not sure that full disclosure with every policy is a bad a idea. This could help bring a sense of respectability to an industry that has been tarnished by the scandal that resulted in over $1 billion in settlements to Marsh, Aon and other giant brokers and the prosecution of rogue underwriters for price fixing practices. Where most lawyers, retailers and other service businesses have made out like bandits, the insurance industry really does maintain modest price margins overall compared to the rest of the financial services sector. Why not publicize this and reap the benefit of good will that could result from full disclosure?

Tony Mossa
Mar 28, 2009 - 4:08 PM

ok... So let them disclose their price margin..no problem...so when I sell an auto policy I would have a disclosure that says the "insurance company" forecasts to keep 25% of this premium and payout 75%..btw this too is a useless discloure to the insured.

Paul Maloney
Mar 23, 2009 - 2:49 PM

Keep on fighting this regulation. Disclosing compensation will simply give clients the incentive to ask for rebates, which are illegal. It is not a secret that sales people are paid by commission. Why single out insurance agents & brokers who have no control over commission paid by insurers or premiums charged. Auto and appliance salespeople don't disclose what they make on a sale and they have price flexibility on their product. Why should only insurance agents disclose compensation? I bet the public would be more interested in how much the car dealer makes when selling a car, than what the commission is on their auto insurance policy.

Bill
Mar 23, 2009 - 4:21 PM

We have virtually no control on what the companies pay in commissions! Stop the politics of this in Albany because that is all this is! Disclosure will lead to clients seeking illegal rebates.

TommyDietz
Mar 23, 2009 - 6:15 PM

The members of IIABNY and all insurance producers in New York State are fortunate to have an organization with the strong leadership to be effective in negotiating with the New York State Insurance Department on the issue of compensation disclosure.

The department's original draconian proposal would heve been a severe burden to the producers in New York State.

Keep up the good work, Dick and Kathy and the all the members of the board.

Scott
Mar 24, 2009 - 9:14 AM

if the GOAL is "TRANSPARENCY", what can be more transparent ( and simpler) in Personal Lines ( CL might be different..especially for larger risks) than to get a quote from Geico, State Farm, Progressive AND your Independant Agent...and let the consumer decide which is best for him? (especially when the Ins Dept regulates/approves all PL commissions!)

TomTuke
Mar 24, 2009 - 4:53 PM

Required disclosure as proposed by the NYSID is not only burdensome, but would also add significant cost, particularly to the personal lines quoting process. With comparative rating today, agents already provide virtual spreadsheets to prospects. Adding agent compensation and supplemental agreement disclosure would only serve to confuse consumers and to divert attention from the value of the policy to pure price. The idea of producer compensation disclosure arose from the practices of the "mega brokers" in negotiation jumbo commercial risks wherein they were guilty of accepting "steering" payments that were not proper, if down right illegal. This is a far cry from the very open, competitive market available in New York State today. A distinction between large commercial insurance, where commissions may be negotiated, should be distinguished from personal insurance sales.

Tony Mossa
Mar 28, 2009 - 4:00 PM

Where are the positives to this proposal ??, I just don't get it- Disclosing commission as far as I can see will only confuse the client into believing that commission should be a relevant factor in his purchase decision-Hogwash! What the client needs to focus on is features,benefits, and limittations-apples to apples comparison- and it doesn't matter if its an auto policy or an annuity policy. And yes it unfairly targets agents and brokers who have families to support while the direct writers i.e.geico get a pass.


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Title: Producer comp. disclosure update
Description: IIABNY President & CEO Richard A. Poppa discusses IIABNY's recent actions on producer compensation disclosure in New York.
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