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Insurance Business | 03 Oct 2013, 12:00 AM Agree 0
Brokers in Queensland have come under fire for pocketing large commissions for sourcing property insurance cover for clients, but one body is keen to set the record straight.
  • Scott | 03 Oct 2013, 11:33 AM Agree 0
    I agree wholeheartedly that North QLD strata really needs to pull it's game up.
  • Mark | 03 Oct 2013, 12:04 PM Agree 0
    Talk about a biased and one sided article...
    I expected better from Warren Entsch too - '"When your insurance premium was $1000, the commission was not so bad. But when your insurance becomes $30,000, that commission becomes a huge cost and I highly doubt the insurers would be dipping in to their profits to pay it," Mr Entsch said" - surely he would realise that a % will increase as the base increases... surely someone has enough sense to realise that the work involved in a $30K account is a little more than a $1K account and the broker should be remunerated accordingly...
  • Paul | 03 Oct 2013, 12:30 PM Agree 0
    Hmm.... when analyst begin to dig down into published profit ratios the business consumer may begin to wonder ..... especially when so many SME owners are struggling for profitability. Interesting times ahead for some.
  • Frank Starvaggi | 03 Oct 2013, 12:44 PM Agree 0
    Whilst I appreciate the comment about being renummunerated accordinly , the work invovled in placing a hard to place risk is more time consuming and involves much more work than a $1,000 account.
    eg Staff resources in obtainning quotations and approaching varoius markets , working out which coverage and if available is best for the client and finally presenting to client for their approval.

    Whilst on the face of it THE client may feel it is money for Jam!

    This is most defineitley not the case.
    I belive Brokers work in the best interest for the client and are paid for their professionalism based on our experiences .

    Thanking you

    regards

    Frank
  • Scott | 03 Oct 2013, 01:37 PM Agree 0
    Sometimes I wish all companies had to show their commission / mark-up / middle-man fees.

    I've read that 700% mark-up is common in jewellery stores, yet people are okay with this because they don't see "Of the $7,000 for this ring $6,000 is for us." Insurance brokers need to disclose their broker fee and commission, then justify it!
  • Kate Fairley | 03 Oct 2013, 02:54 PM Agree 0
    Didn't anyone bother to tell them that industry standard commission on commercial is actually 22.5%?
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