Nachman: What about Bailey's point that profit sharing discourages brokers from advocating for insureds at claim time? Gelia: Absolutely not. Nachman: What about the perception? Gelia: Clients care about their individual situation. Again, it's so competitive, I have to do the best job I can or lose the account.
Berlin: Why would mandatory disclosure be less effective than voluntary? Gelia: Mandatory disclosure would produce information overload that the clients would disregard. Berlin: Do you track your loss results with companies during the year? Gelia: Marketing reps keep us informed. However, can't foresee events like the October storm. Can't recall receiving correspondence telling him that he's close to receiving profit sharing.
Brooks: So you see no conflict of interest at all for agents and brokers? Gelia: No. Brooks: Since you described yourself as a "business partner" with the carrier, does that represent a confict of interest? Gelia: No, the insured is the client of both the carrier and the agent. Brooks: How would you provide specifics if a client demanded it? Gelia: We would have to work that out.
Brooks is trying to pin Dave down on why agents track premium & loss data for companies but not for clients. Brooks: Do clients not ask for this because of their ignorance? Gelia: I as a consumer don't know how my vendors get paid.
Berlin: Don't you advise clients on which policy is best suited for them? Gelia: Yes. Berlin: So don't you think compensation information would help the client make a decision? Gelia: If they ask, I'll be happy to tell them.
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