What’s new: In brief (March 21, 2005)

Brokerage Heath Lambert Group says it will now charge a 1% (of premium) flat rate for work carried out on behalf of insurers. The “broker insurer services commission” (BISC) is a response to the industry’s ongoing controversy over broker compensation, and Heath Lambert says the flat rate should be more transparent, fair and simple to understand. In a statement, Heath Lambert notes that other brokerages are looking at fees up to 5%, while some regional brokers continue to use contingent commissions. However, the broker says it hopes competitors will follow its model, which it says has gained the support of insurers.

The U.S. House has seen new legislation tabled to create an asbestos fund. H.R. 1360, the “Fairness in Asbestos Injury Resolution”, introduced by Republican Mark Kirk, will create a privately-funded, publicly-administered fund, building on a framework earlier proposed by Senator Bill Frist. In a statement, Kirk says the measure will help asbestos victims but also “lift a dark cloud that sits over hundreds of companies trapped in the asbestos litigation abyss”.

Please note, the PLUS Canada seminar “What’s Lurking in Your Files”, is set for Friday, April 22 at Toronto’s Ontario Club. Visit “My Events Calendar” at www.canadianunderwriter.ca for more information.