US risk managers are being urged by the Risk and Insurance Management Society (RIMS) to avoid contingent commission-based pay arrangements with brokers.

Following the New York Insurance Department’s decision to lift a ban on big brokers accepting contingent commissions from insurers for placing business, RIMS has reiterated its opposition to the controversial volume-based payments.

Large US brokers are now only required to disclose to clients how pay arrangements are settled, and only if formally requested to do so.

RIMS President Terry Fleming says risk managers should “walk the talk” to avoid any perception of partiality.

“I go with brokers who don’t accept contingent payments,” he said.