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Broker: ‘We should unveil our commissions’

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Insurance Business | 26 Nov 2012, 12:03 AM Agree 0
A New Zealand insurance broker claims to stop the broking channel's reputation being tarnished there should be complete forced disclosure of commission levels so the greedy brokerages are exposed.
  • Giles Thorman | 26 Nov 2012, 01:00 PM Agree 0
    It is interesting to note that Rene Swindley states that as a company "they disclose our fees on all commercial business". It makes no mention of commission, is all of that detailed as well?
  • Andrew Newman | 26 Nov 2012, 02:58 PM Agree 0
    Hutchison Rodway Waikato is a net brokerage. We do not take commission on commercial accounts.
  • Mark | 26 Nov 2012, 03:38 PM Agree 0
    'sometimes the broker remuneration was over ten times the client's general expectation'...

    And I am sure in many of these circumstances the brokers workload in placing the risk was many times the clients expectations...

    Funny thing about figures also - you can receive a commission from the insurer or net the policy and charge the commission as a fee for service - client still pays virtually the same but you are no longer considered a 'greedy brokerage' even though you are earning the same amount...
  • Daniel | 26 Nov 2012, 05:22 PM Agree 0
    Net brokerage? So all you do is charge a roughly similar fee for the commission you are forgoing. Good marketing tactic for your clients and I don’t begrudge you of that (look at us, we don't take commission!) but it might be a tad rich to then go a step further and pontificate on an insurance broker news website.
  • DC | 26 Nov 2012, 08:02 PM Agree 0
    Brokerage puts us Insurance Brokers in a position of essentially earning a success fee for the work we do.

    This is achieved whereby our specialist advice, custom insurance program and claims management maximises a client’s claim i.e. they can claim for far more (maybe an incorporated profit margin they weren’t expecting?) and the renewal premium is higher therefore we brokers earn more - your fee CANT do that.

    Furthermore, fee for service does not foster open dialogue amongst broker and client where the client starts viewing us like lawyers who charge for every conversation
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