American Association of Insurance Management Consultants

Broker Contingency Commission – Good or Bad

Summary: 

In this White Paper summary, Mr. Underdown explains that the fact that a broker has a contingency-type producers contract with a specific insurance company can be of great value to the insured resulting in a lower price for the insured, under the right circumstances. Therefore, contingency commissions are not inherently bad for the ultimate consumer. He states the real issue is one of full disclosure.