Compensation scandal ups broker workload: Best

A new survey by A.M. Best finds the current controversy over broker compensation systems is forcing all brokers and agents to do more work, specifically in providing information, answering questions and filling out paperwork.
The survey, published by Best’s Review magazine, finds client expectations have risen in the current environment, including agents and brokers being asked to submit more proposals and bids.
Almost 40% of brokers say they are contacting clients more frequently now, while over 23% have stepped up staff training and more than 15% plan to recast their marketing materials in light of the compensation crisis.
Some brokers say they are providing letters to clients addressing the issues involved in the current scandal in order to head off questions, while other have already reviewed all contracts and agreements.
Many respondents feel that full disclosure is the way to maintain good client relationships, but a small group point to the need to change compensation structures, such as getting rid of contingent commissions.