My hero this month is Michael DArelli, vice president of legislative and regulatory affairs for the Western Insurance Agents Association, who hammered national brokers for suggesting that all producers should give up their contingency fees because of the shame brought on the industry by a notorious few in their ranks.
Agents have been up in arms ever since New Yorks crusading attorney general, Eliot Spitzer, caught some national brokers in the act, rigging bids and steering business to cash in on volume-based bonus fees. But their retorts have been relatively restrained. Mikes salvo, however, was an outright rant, and I give him raves for voicing the frustration of independent agents everywhere, who are tired of being painted with the same broad brusha transgression I must admit I committed myself early on.
What set Mike off were statements by J. Patrick Gallagher, president and CEO of Arthur J. Gallagherto the effect that a bifurcated market, in which some brokers cant get contingent commissions, but others can–cannot survive long term. His implication is that all agents and brokers should just give upor be forced to surrender–the lucrative bonus income.
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