July 23rd, 2013

PA/MGA Survey: Risk Sharing

Posted at 1:00 AM ET

Program managers may also manage the performance of their programs through the pursuit of risk sharing on behalf of their PA/MGA partners. As we saw in past surveys, not all respondents require risk sharing. This year, somewhat fewer respondents utilize a sliding scale commission structure (76 percent versus 86 percent last year). The number of respondents utilizing some type of captive structure doubled this year from 12 percent to 24 percent. As an alternative, 36 percent of the respondents will still pay flat commissions.

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