Willis: "We must banish contingent commissions"

Willis chairman and chief executive Joe Plumeri firmly reiterated calls to end contingent commissions this week with the publication of a white paper outlining “a new model for the insurance industry.”

'The Leadership Moment,' based on Plumeri's speech to RIMS last week, states: “Contingents are contradictory to conflict-free representation and all brokers and
insurers should banish them completely and unconditionally.”

The paper also outlines demands for greater disclosure of broker compensation arrangements and a redefinition of the way value is calculated within the industry:

“Value should be defined as 'the difference between what clients can do for themselves and what we can do for them.' Value delivered – tangible, measurable value – needs to be part of the compensation equation for brokers and carriers alike.”