Western Agents Blast Insurers for Settlements Restricting Compensation

August 2, 2006

  • August 2, 2006 at 1:30 am
    HERE, HERE! says:
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    I don\’t often let others speak for me, but good job WIAA.

  • August 2, 2006 at 1:37 am
    Mike says:
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    Hello,
    I think the writer of this article doesn\’t seemt to grasp that no one has a problem with the contigent arrangement in itself, however, what the problem was that the brokers and carriers were essentially price fixing coverages for the insureds.

    This was done by redirecting coverage bids to carriers who were not necessarily the lowest effective coverage pricing, in exchange for the brokers receiving commissions from the carriers for the placement of the coverage which had been steered to them.

    So, the carriers involved wish to settle the claims expeditiously in order to avoid what could be much more significant financial damage.

    Until this broker puts the all of the financial relationships on the table, the insureds will not trust them as they should.

    So, I hope that contigent commissions continue some form, but without the added
    extra undeclared kickbacks.
    Thank You.

  • August 2, 2006 at 1:43 am
    midwest says:
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    St.Paul/Travelers continues the company trend to cut agent compensation. They will the the dollars that they would have paid in legimate contingencies to pay their fines and lobby against the agents that sell their insurance. When that is done they will just use it to prop up the company bottom line. Typical big company behavior, screw up and then make the agents pay for it. Its truly ashame that Mike assumes that all agents were on the end of the kickbacks, where I come from those that were would be in jail and out of insurance. As it should be.

  • August 2, 2006 at 1:56 am
    Mike says:
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    Hi Midwest,

    Thanks for your e-mail.

    I would never believe that all agents where involved with the added contigent arrangements.

    Actually, I suspect that it was a few well placed agents (and carriers) that gave all of us a bit of a black eye.

    Our integrity means more than anything so I truly look forward to us continuing to show that we deserve the trust of our insureds.

    Be Well,
    Mike

  • August 2, 2006 at 3:08 am
    John M says:
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    Last I checked, Independent Agent means independence from any one carrier. I deplore the absolute surrender here, but other carriers will continue to pay for profitable business, and so will St. Paul/Travelers when it starts to go away from them. I put my trust in the Gordon Gekko sentiment: Greed works.

  • August 2, 2006 at 4:56 am
    Reality Check says:
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    Unfortunately, greed only works in rare cases. As a matter of fact many of those who do engage in the \”greed is good\” theory hurt those of us who believe in the \”to give is better than to recieve\” truth. I\’ve been in this business 20 years and can honestly say, I trust less than 20% of the agencies in our business. We are profitable and receive contingencies because of honesty with our clients and carriers.

    Yeah, this is a black eye against Travelers because of the few of those practicing the \”greed is good\” theory.

    As far as the Gekko is concerned, he\’s nothing more than a snake with legs.



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