PIA has written an Open Letter to the Insurance Industry, which appears in this week’s property/casualty edition of the National Underwriter. In it, PIA National President Donna Pile reiterates PIA’s support of the ability of carriers to compensate their agents with contingent commissions and of agents to receive them. The letter says in part:

“Efforts to ban contingent commissions, yearly bonuses or any form of incentive compensation must be seen for what they are: anti-competitive attacks on how our American Free Enterprise System operates. Today, insurance compensation systems are under attack. Which industries will be next?”

“Contrary to what some may say, independent insurance agents do not believe that changes in compensation structures are in any way the ‘right thing’ to do.”

“PIA will continue to fight for the right of carriers to reward their independent agent producers with contingent commissions as part of their compensation. And PIA will continue to fight for the right of independent agents to receive such compensation. We will continue to fight in the courts, through state legislatures and in the court of public opinion. Why? Because that’s the right thing to do.”

An Open Letter to the Insurance Industry (PDF file, National Underwriter 3/26/07)

March 27, 2007