How can you resolve conflicts with brokers over commissions?

problems start right here. It amazes me how many business owners don't read contracts. If they do they play the game of speed reading to Impress? Read contracts to understand and to have knowledge about what happening. If there is no understanding then there is no foundation for an ongoing relationship Ask questions. If the broker cannot deliver an answer that is firm and confident don't deal with them.

One good solution is to have a separate document as a commission schedule that not only outlines the commission but also when it is paid and if there are any clawbacks.

If you start to rant or threaten legal proceedings at this stage, this will inevitably damage the relationship and there could be no turning back. Always try to resolve issues before heading down that route.

never make conversations in an attack format and never make it personal by using the words 'you or them" Use words that are not aggressive. Take notes. Use analogies to get your point across. Listen and hear what is being said If you need time to consider what is being said - take the time away from the meeting to consider and understand what is being said

I have seen this on multiple occasions in my working career. Those who compromise win, and retain their reputation. These actions may generate new business through future recommendations.

When I had my broking business I was always conscious of the client's true financial position and I would adjust my commission accordingly. For example legal; liability premiums are sometimes quite high. To take 20% commission for renewal of this cover is sometimes I think unnecessary. Brokers only earn their commission twice. 1) at renewal time 2) should there be a claim. Talk to the client on renewal when delivering the quote and tell them that the commission has been discounted. Sometimes the clients come back and advise that they consider that the commission earned should be taken in full. Brokers need to build a relationship with their clients based on respect. No respect will end up with no client.

Most cases will be resolved in mediation. It’s the last bastion of control. The parties, with the help of the mediator, are able to come together and reach an agreement instead of having an award or judgment forced upon them by an arbitrator, judge or jury.

well if the above steps are taken there is no need for mediation. Once you get to this stage it's hard to go back and have a relationship with your client.

Keep in mind that resolving conflicts with brokers requires patience, professionalism, and a commitment to finding a fair solution. It's often in both parties' best interest to reach an agreement that preserves the working relationship and avoids costly legal actions.

It is not clear from the question if the conflict is with a client or carrier. I work with group products. Brokers are required to notify clients in writing of commissions they will earn on group insurance products. If the dispute is with a client, a broker should be prepared to explain why he/she is worth this commission - what work is involved in analyzing data, negotiating proposals, servicing clients, etc. It the dispute is with the carrier, that's an entirely different situation. In this case, commissions are usually spelled out in the contract they have with the carrier.

Great feedback Patti. This article highlights some of the perils of generating content with AI. While the basic outline of the article seems like a reasonable way to resolve any type of dispute, the AI misses that commissions are established by contract and negotiation of commissions is prohibited in many states by rebating laws. The steps seem fine, but the article doesn't touch on the "why" of the dispute. Is it about earned but not paid commissions? Is it about paid but not earned commissions? Is it about a dispute over a bonus payment? Absent that, this is really just a junk food article - empty calories.

heres a thought. Why not charge a fee for the claims that you handle for your client? This is when the work is really done especially if its a questionable claim.