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Archived stories from 2010

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Contingents latest - they're (not) taking them. Are(n't) they?

Mega Broker Inc has surprised the market with its announcement that it will/not accept contingent commissions on (m)any placements for certain clients on some businesses provided by the firm's core and peripheral broking operations. In February, several insurance brokers reached an agreement with regulators to lift or retain the ban on contingent commissions in place on and off since 2005. Lifting or imposing the ban could boost or diminish the brokers' revenues and/or increase competition for business, analysts say, as insurance prices continue to go up and down.

It will also alter their administrative and compliance burden in some way and maybe level one end of the playing field with smaller brokers, which were/not subject to the earlier or later ban.

Mega Broker said its units Mega Agents and Mega Mina will accept contingent commissions while Mini Mega and Agent Mega Inc won?t touch them with a barge pole.

In addition, Mega Corp will continue to collect commissions and/or fees for services from insurers related to its core contingents operations if insurers insist on paying them.

Some brokers are at odds with Mega Broker?s announcement, however. Hamilton J Humbug IV, chairman of Mammoth Broker Inc told RISKbitz that total transparency is needed on certain aspects of the insurance transaction. ?Like a high class hooker servicing a respectable attorney general we have to put the client first and provide total discretion when it is requested.?

Other news from May 2010
Travelating the Wave of Insurability
the serious stuff
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