Managing your own expectations

The issue of contingent commissions, bid-rigging and the way brokers are remunerated proved itself to be bubbling away in the popular consciousness of brokers at the end of last month. A fact that is probably unsurprising considering it cost Marsh in the US $850m (£482m) this time last year. However, an insight into the lingering damage to the image of Marsh UK among brokers was proffered a recent conference in London.

A tirade by Paul Dickson of Dickson Insurance Brokers against Marsh UK retail chief Toby Foster, while scathing, was applauded by brokers, who witnessed a display of emotion rarely seen at such industry gatherings.

Dickson announced: "I do not like to be lectured on models of business by Toby Foster. Marsh is a firm that has been discredited because the issue was not just about contingent commissions but bid-rigging."

Clearly, the applause was in accord with Dickson's discomfort at listening to someone whose firm had undoubtedly lost credibility. It also seemed that brokers applauded out of annoyance at the loss of credibility the whole Spitzer episode had cost the industry. The resulting suspicion cast over all brokers' practices in the eyes of clients and the public as a result is lamentable and is obviously something that is felt most acutely by brokers themselves. It is an irony then that some brokers perpetuate this same suspicion by accusing one another of foul play when it comes to commission arrangements.

Such allegations were brought to PB's attention in late September in connection with Scottish broker Giles, which suggested a recent account was lost over confusion about how Giles was paid. Having thoroughly investigated these allegations, from credible sources about market speculation, it would seem that somewhere along the line, the information is suspect. It would also seem that some are out to hijack prevalent issues to capitalise on the misfortune of others.

There is nothing new in bad-mouthing competitors but, surely, this sniping contributes to the point that Dickson was applauded for about the wider issue of reputation shredding suspicion. If brokers continue to sling mud at each other and the sector engages in this sort of activity that perpetuates suspicion within its own ranks, how will it ever project professionalism and be expected to be regarded as such?