New Britain herald., 1929-09-11
Commissioner Dunham Proposes
 Reduction In Insurance Costs
 By Cut In Fees Paid to Agents
Connecticut Official Speaking at Meeting of National Association at Detroit, Proposed Radical Read-
 justment to Slash Expense to Publc

Detroit, Sept. 11-A plea for re- duction in the cost of writing insur- ancc through the lowering of agents commissions was voiced by Colonel Howard T. Durham, insurance com missioner of Connecticut and presi- ucnt of the national association of insurance commissi oncrs, in an ad- dress here today before the national association of insurance agents, on the potentialitios of the association at the Book Cadillac hotel
 Colonel Dunnam made it clear that he was a firm believer in the American agency system which he forecast would undergo severe test in the next decade. He called attention to certain trends resulting from unwise competition which are likely to undermine the system and prove injurious to the insurance business.
 What Public Pays
 Discussing the problem of insur- ance costs, he said:
 "The total cost to the public of their insurancCs is made up of two eloments-the actuarial costs of the various risks undarw .ittcn and the costs of doing the business. You should be told that there is a wide spread and growing opinion that the second of these clements is now eX- IpSGiNp1,- l.rcrp Tho C., ing this state of things is primarily problem for the managers of in suranco companiCs. But you must recognize however little you may like the idea, that one important element of the cost of insurance to the public is the agents commission. and that there may be drastic de- velopments in connection with this element of cost unless you put your own house in better order.
 Large insurers, especially, arc asking why they should pay so heavily for the intcrmediation of q solicitor of business between them selves and the insurers. Some as sert that a solicitor of insurance business performs no service of any substantial value either to them selves or 10 the insurance compan- ics. TEey know the importance of being insured and would in general take out as much insurance if they had 10 deal directly with officers oi the insurance companies. If they need any assistance at all, they say that they find a broker more useful than a solicitor Of insurance. since all they require is some technical aid in placing their various risks most economically and safely. Tn other words, you agents need to reconsider your relation to tho i insurance business of this country Those of you who are competent arc 1 able to perform the services which | the New York brokers now so largely l perform, and you should rccogniz that in such services will lie youl chief future title to compensation and no longer in service analogou. | to those Of pcripatetic book agent
 who sells books by personal solici
 tation which would not otherwise bt sold.
 Must Devise Competition Costs
 Tn the past your job, to a con. siderable extent, may also be likeneC | to the job of a mercantile drummer who gets business for his own con. | cern away from competitors. IT mercantile affairs the expensive services of drummcrs is being in. creasinGly dispensed with, as middle, 1 men are superseded by chain storC organizations. Just 90, insurance | companies are going to be forced by | social pressure to lo away witt those conditions of unwholcsom, 1 competitions which made drummers | of business worth paying for.
 T respectfully urge you in gooG season 10 set your best minds al work studying the conditions I have briefly outlined. Face the realities 1 bravcly and intelligenly. You arc | going to find that many commission. | must be reduced. You may fine | that those of your membership whC are most competent will nevcrthc 1 less be better off. If the require. 1 lncnts on insurance agents are nc longer to be met by qualifications | analogous to those of the book. agent or the drummer the influ, | into the business of new incompc. 1 tent agents will be checked, and tn, i competent remainder may find in { 1 larger and organized business more satisfactory livelihood thai