WASHINGTON–An agents group said a study has shown that contingency commission payments are key to keeping the independent agency system in place and ensuring the survival of smaller and midsize insurers.
The Independent Insurance Agents and Brokers of America said that was the conclusion of a research project it paid for conducted by Robert Hoyt of the Terry College of Business at the University of Georgia with Randy Dumm and James Carson of the College of Business at Florida State University.
IIABA's study arrives in the wake of an agreement by St. Paul Travelers to settle complaints in three states over price-fixing and accounting misdeeds by agreeing to drop the commissions and pay $77 million to New York, Illinois and Connecticut in fines and customer reimbursement.
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