Issue
Commission based compensation can create an inherit “conflict of interest” in that agency compensation will increase commensurate with premium increases received by the insured. Also noteworthy is the fact that carriers quotes can vary greatly in terms of the commission percentage. These issues, if not addressed in a professional manner, can result in the insured questioning whether the current broker is working in the insured’s best interests.
Value
“Service Fee” compensation and/or full disclosure of commission revenue provides transparency in the insurance transaction and, in turn, objectivity in the relationship between the insured and it’s broker.
Testimonials
“The Scheider Team, on his own initiative came to me with the idea of a “service fee” rather than commission based compensation. Although this saved us thousands of dollars, it cost The Scheider Team thousands of dollars in commission. I believe this was because he was more concerned about developing a long-term relationship with no inherit conflict of interest. I think this says a lot about The Scheider Team’s ethics and his commitment to developing a long-term relationship with his clients.”
KS Energy Services LLC - Dennis Klumb Jr., President & CEO
“Up until we began dealing with The Scheider Team, there was never a discussion of compensation with our broker. The Scheider Team fully disclosed the commission revenue generated by our account and offers to write coverage lines at either a reduced commission percentage or on a Net of Commission basis.”
Super Excavators, Inc. - Jeff Weekly
