The agreement says, “Marsh’s insurance brokerage unit will be allowed to accept contingent commissions for its managing general agency (MGA) business.” In accepting the contingent commissions Marsh doesn’t need “to seek permission from the retail customer and disclose commissions or other financial arrangements.”
Marsh is still not allowed to “accept contingent commissions when acting as a retail broker and must still disclose all forms of compensation.” Many MGA’s are continuing to oppose the ban on contingent commissions because of they are not dealing with the policyholder or collecting fees from the policyholder.
What is your take on this situation? Should all MGA’s be banned from collecting contingent commissions?
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