Is It Right for Insurance Brokers to Make Money from Both Sides?
One of the slipperiest slopes in the insurance industry is the question of whether independent agents and brokers should take money from insurance companies while claiming they are “impartial” when they sell those insurers’ policies to customers. This practice has led to charges, indictments, ruined reputations and fines for some of the biggest insurers in the business, such as Marsh & McLennan and American International Group. Opinions run the gamut from risk managers at major companies who say it’s unethical, to brokers who claim it’s an important part of their income. The three biggest insurance brokers – Marsh, Aon and Willis – are banned from taking these commissions due to settlements they made with then New York Attorney General Eliot Spitzer. But…
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