'We'll get our own back on brokers' commission uplifts, Burns says
QBE chief executive Steve Burns has weighed in to the broker remuneration debate, calling for more fee-based payments.
Speaking after QBE announced full-year results, Burns said: “We’d all like to see more business done on a net fee basis, but that will take changes to structure. We are paying the appropriate commission risk by risk, but it is variable.”
Although London brokers Aon and Willis are demanding commission uplifts, Burns said demands from brokers would be short-lived. “It is just part of the cycle. We’ll get our own back in two or three years,” he said.
His remarks follow Hiscox chair Robert Hiscox’ comments that broker remuneration is “ridiculous”.
QBE posted a European profit of £153m for the year to 31 December 2010, up 12% on 2009.