Insurance brokers, speaking to an investors’ conference, said they are surprised contingent commissions have not been banned throughout the industry, with one top official saying he cannot understand how a double standard of compensation can exist in such a highly regulated industry.

Indeed, J. Patrick Gallagher, president and chief executive officer of Itasca, Ill.-based insurance broker Arthur J. Gallagher & Co., said he would never have predicted that a “bifurcated market” would exist on commission payments, adding that he does not understand how such a dual market can survive long term.

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