Brokers and MPI agree on new compensation model

Independent brokers and Manitoba Public Insurance (MPI) have entered into an accord for a new compensation model that will support a more convenient renewal process and new product offerings for customers in the future.
The plan includes the following features:
The gradual decrease in commissions for Basic Autopac sales will be offset by an immediate increase in commissions for sales of optional coverage, retroactive to June.
Flat fees paid to brokers for other types of transactions will increase, and all flat fees will be indexed to the Consumer Price Index. A flat fee on new driver’s licence applications will be paid until 2013.
Compensation for driver’s licence insurance will be based on a percentage of written premium rather than a flat fee.
The plan accommodates future business changes, while ensuring a strong and viable future for the more than 300 brokers distributing products and services on behalf of MPI, according to MPI president and CEO Marilyn McLaren.
The Insurance Brokers Association of Manitoba (IBAM) worked with MPI to jointly arrive at a new compensation model, according to a release.
The new model was ratified by IBAM members this summer and recently approved by the Manitoba government.
“Independent insurance brokers play an essential role in the delivery of public auto insurance and driver licensing services,” Dave Chomiak, the province’s justice minister and minister responsible for MPI. “Without their partnership, it would not be possible to provide all Manitobans with such convenient access to service and sound advice.”