Willis Chairman and CEO Joe Plumeri has issued a blunt challenge to brokers to dump contingency commissions and embrace more innovative revenue streams.

In a lively and stirring keynote address at the National Insurance Brokers Association (NIBA) convention on Sunday, he described commissions as stunting the growth of the industry.

Mr Plumeri says the inherent conflict of interest is too great to ignore, and brokers rely too heavily on commissions to sustain their bottom line.

He also defended his decision to remove commissions and then to reinstate an "optional" 2.5% commission. He says it was driven by competitors - "one beginning with an A and one beginning with an M".

"Both of them still charge commissions, so it puts us at a disadvantage. We've moved beyond transparency to transparency and permission."

The former Citibank chief also told brokers at the NIBA convention to stop navel-gazing and hold their profession in higher esteem.

"Insurance is the DNA of capitalism. But the industry doesn't have the self-esteem it should have. If it wasn't for the insurance industry, they wouldn't be playing jazz in New Orleans right now."

He says brokers must adapt to many threats - political, environmental and societal - to retain and enhance their place in the global economy.

Mr Plumeri says change in the insurance industry happens in increments. Traditions are important, but they must never stifle innovation. Brokers must look beyond conventional means and embrace non-conformity.

"Price is an issue only in the absence of value."