Workers’ Compensation Competition prevails for the workers’ compensation line, according to the Letter. Some firms are seeing indications of price flattening, with a hint of hardening, at least in some hard-hit sectors, such as construction and manufacturing. Even so, attempts by insurers to increase rates often have been off-set by lower payrolls. Also, some accounts continue to obtain favorable arrangements on loss-sensi-tive rating plans.
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Decreased premiums, medical cost inflation, rising indemnity costs, and poor investment returns are all exerting significant upward pressure on pricing. Nevertheless, insurers continue to show a willingness to discount to keep or gain market share.
by placing arbitrary caps on agent commissions, RMA is contradicting Congress’ intent of providing widespread availability of crop insurance to farmers across the country.” There are about 18,000 agents across the country who work to ensure that America’s farmers and ranchers are receiving the best services through the federal crop insurance program.
“During a time of great economic
strain and instability it seems imprudent to slash a program which has helped rebuild America’s farmland,” added Symington. “The Big ‘I’ is greatly concerned that this cap would eliminate the essential aspects of competition and service incentives that are vital to the crop program.” IIABA’s letter warned that limiting marketplace competition for agents could result in a decline in service, as well as prompt insurers to set a
WASHINGTON, D.C. — The Independent Insurance Agents & Brokers of America (IIABA) along with other agent groups recently opposed proposed changes to commissions and profit sharing related to federal crop insurance in a letter to USDA Undersecretary for Farm and Foreign Agricultural Services James Miller and Risk Management Agency (RMA) Administrator William Murphy.
According to IIABA, the expected cut to commissions through a “soft cap” would be $6.9 billion over 10 years for agents that participate in the Federal Crop Insurance Program (FCIP). There is also a recommendation to introduce a “profit sharing” agreement for FCIP agents.
“The Big ‘I’ believes that limiting marketplace competition for agents who provide high quality customer care to their clients will result in a decline in the efficient and effective delivery of services, as well as lead companies to set a standard commission rate,” said Charles Symington, IIABA’s senior vice president of government affairs. “By disincen-tivizing agents to write policies in high risk parts of the country and
Nakeesha Warner at n.warner
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