INSURER CEO STUNS THE INSURANCE MARKET WITH HIS STATEMENT ABOUT BROKERS
Insurance brokers are the sales arm of the insurance industry. They should have a good relationship with the companies that provide the product they sell. But their actions and compensation finally got to the CEO of the Chubb Group. He stated in the 2016 company annual report, that brokers use “abusive behavior” cloaked in the mantra of “customer best interest,” and he referred to their commission as “by any measure excessive.”
CEO Evan Greenberg predicted there would be “customer and regulator backlash.”
Controlling broker actions, and reducing excessive compensation (the delta to accrue to the client) are key parts of what we call risk management.
May 06, 2017