Airmic delegates unconvinced on broker transparency and remuneration
The Association of Insurance and Risk Managers (Airmic) delegates are still concerned about broker remuneration and transparency according to the results of an interactive survey conducted by Oxygen Insurance Brokers (Oxygen) at this year’s Airmic conference.
The survey of risk managers’ attitudes toward the broking industry revealed an overwhelming amount of respondents (86%), said that how brokers were paid was important.
Despite comments to the contrary by some brokers, a total of 70% of respondents said the sector had not changed as a result of Elliot Spitzer’s exposure of bid rigging in 2004 and when asked whether large broking houses are now fully transparent about their remuneration, close to three-quarters disagreed.
The survey also showed that 78% of delegates questioned believed that brokers’ remuneration should be fee-based rather than commission-based.
Commenting on the survey, Ed Grant of Oxygen said “The relationship between brokers and risk managers does remain strong as evidenced by 82% of respondents stating they view their brokers as more than simply deal makers.
However, issues of remuneration and transparency continue to affect the relationship with risk managers. Oxygen has developed its business with these at its core and we are committed to continuing to drive for full transparency. ”