The Big “I" Board of Directors has adopted a policy statement on agent compensation and appointments in the current hard insurance market. The statement is intended for all insurance industry stakeholders and emphasizes the critical and unique role that independent agents and brokers play in the insurance marketplace. It details the services they provide for both consumers and carriers and expresses concern about recent carrier reductions in agent commissions and inappropriate agency terminations.
While acknowledging the challenges insurers face in the current hard market, the statement also affirms that “we also believe the practice of reducing agent compensation and terminating agency appointments is rash and misguided" and that “the ability of agents to serve the needs of consumers is hindered when insurers inappropriately terminate agency appointments." The policy document goes on to say that insurers have a responsibility to discuss in advance with their distribution force any significant actions they will take.
The board discussed and voted on the statement at its recent annual Winter Board Meeting. This marks the first time a formal public policy statement has been issued by the Big “I" board since 2007.
The new policy statement is available to view with a Big “I" member login on the legal advocacy & governance section of the Big “I" website.
For questions or more information, contact the Big “I" office of the general counsel.