The ALS Group Risk Management Articles

A Conflict of Interest or Acceptable Payment for Services Performed? Part One It was recently announced that Arthur J. Gallagher, the world’s fifth-largest broker, has received permission to receive contingent commissions from insurers. This announcement has been met with both positive and negative comments. Insurance brokers applaud the announcement as a way to level the playing field, while Risk Managers have condemned it. What is it, and why should I care?Contingent commissions are commissions paid to insurance brokers or agents by insurance companies based on the total volume of premiums written by the carrier and produced by the broker/agent. There are many formulas used but the rationale has been that

What is it and why do I care? Part Two Why do I care about TCoR? The answer is, “why not?!” All of the costs that I have discussed above are bottom line costs. By tracking TCoR and designing a customized strategy to control these costs, savings can be realized on the bottom line. That means every dollar saved is a dollar of improvement in profit. Now what can I do with this information? Okay, now that you have tracked all these costs for at least the last two years, what’s next? As a Risk Manager, I would go through each of the strategies that the business has in place