Risk managers are still concerned about broker remuneration and transparency, according to a survey conducted at the Airmic conference.
The survey revealed a large number of respondents (86%) emphasised the importance of how brokers are paid.
Over two thirds (70%) of respondents said the broking sector had not changed as a result of Eliot Spitzer’s exposure of bid rigging in 2004.
Three quarters said the large broking houses were not fully transparent about their remuneration, despite efforts to achieve this.
The survey also showed that 78% of delegates questioned believed that brokers’ remuneration should be fee, rather than commission, based.
Ed Grant of Oxygen Insur-ance Brokers, which commission the survey, said: “The relationship between brokers and risk managers remains strong as evidenced by 82% of respondents stating they view their brokers as more than deal makers.”
However, issues of remuneration and transparency continue to affect the relationship with risk managers.
An earlier survey by Airmic found that brokers had improved the transparency of their remuneration, according to risk managers.
Nearly 40% of risk managers described their brokers’ willingness to disclose their remunerations as ‘excellent’; 36% described it as ‘good’.
Airmic said the survey showed there was still “some way to go” to achieve total broker transparency.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
