The board of directors of the Minnesota Independent Insurance Agents has drafted legislation for possible introduction in the state legislature this January that would permit agents to collectively bargain the terms and conditions of agency contracts with insurance companies.
This legislation is being considered by the association in response to the frustration by member agents due to the direct competition in the marketplace by insurance companies, loss of business to these same companies, unilateral commission and contingency cuts, and insurance companies shifting the cost of business to agencies.
“Our membership has seen a massive shifting of expenses and commission reduction passed down to the member agents over the years and it hasn’t stopped,” said Dave Szczepanski, president of the association. “Insurance companies have indicated that their margins need to improve; unfortunately, the cost is being shifted to the agent. Agents need income to operate their agencies to sell the companies’ product. Agents can no longer sit on the sidelines while insurance companies reap the financial rewards of our sales successes.”
Currently, the leadership of MIIA is in contact with the Insurance Federation of Minnesota, an association representing insurance companies in the state. The Federation is opposed to the collective bargaining proposal. The two groups will continue to meet to explore alternative mechanisms for greater insurers and agent communications and negotiations.
Topics Carriers Agencies Legislation Minnesota
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