The new Consolidated Appropriations Act (CAA) of 2021 requires brokers, advisers and consultants to disclose to their employer clients all the compensation they expect to receive and detail the services they will provide. The goal is complete compensation transparency that allows employers to better understand broker incentives and gauge conflicts of interest.
A broker’s compensation disclosure form, done properly, will reveal what a company is paying and, more important, receiving for the money being paid. Because most brokers’ primary compensation is commission paid by the insurance company, employers largely have ignored how much their broker is paid.
