When Scott Clark, member of RIMS board of directors and risk and benefits officer for Miami-Dade County Public Schools, commented in the National Underwriter on Gallagher’s decision to disclose contingent payments and provide clients the choice of whether they receive them, he used a figure of speech to express RIMS approval of that decision.
RIMS does not claim authority in assigning or granting “gold standard” status or any other classification for any broker, nor does it plan to in the future.
An extensive outline of RIMS position on broker compensation can be found in RIMS executive report, A Practical Guide to Insurance Broker Compensation and Potential Conflicts of Interest for the Risk Manager. The report is free for RIMS members and can be purchased by non-members by clicking here.
RIMS reaffirms its position that contingent fees for insurance producers should be prohibited, and that in the absence of prohibition, all compensation arrangements should be fully disclosed to the client.