The US based public sector risk association said it would continue to fight for mandatory full disclosure
The US based Public Risk Management Association (PRIMA) has spoken out on the issue of broker remuneration, calling for full and mandatory disclosure of all forms of compensation.
In a statement the association said: ‘PRIMA would like to reiterate that full and mandatory disclosure of ALL forms and sources of broker compensation should be provided to purchasers of insurance. PRIMA believes transparency in broker compensation is important for the following reasons.’
PRIMA said as well as being an issue of trust government agencies are required to live up to high standards of transparency particularly when it comes to managing public funds.
“Public sector employees are subject to intense public scrutiny and are charged with the public trust. The conduct of risk managers and other public employees and officials must always be professional and above-board. This means that the transactions they are involved with must be done in good faith and with complete integrity. The divulging of potential conflicts of interest gives support to transparency and promotes open communications between the engaged parties.”
The group said it would continue to encourage full disclosure of commissions or other payments that could affect the placement of insurance coverage.
PRIMA’s membership consists of more than 2,000 public entities.