Willis chairman and chief executive Joe Plumeri firmly reiterated calls to end contingent...

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.”

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