Quality not quantity key to commissions

I broadly agree with Jeremy Lawton that the actual amount of commission a broker earns on placement is not the issue for commercial clients (PM, 23 June, p12). What concerns many of the commercial insureds that I deal with, however, is what they actually get for that commission.

Many brokers have earned total commissions in excess of 20% for long-held accounts (how many retailers have a margin like that?) for which they do surprisingly little during the year to remind their clients that they exist. Admittedly, the problem worsens with the size of the broker but essentially the issue with commissions is that they are usually disproportionately large for the work done to earn it - add more value and you will deserve more income.

Justin Musson, Corporate Insurance Advisory Practice, KPMG (UK)

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