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MMC, Aon could receive $200m in contingents
17 February 2010
The Spitzer-era ban on contingent commissions for the world’s biggest insurance brokers, Aon, Marsh and Willis, has been lifted. An equity analyst believes Aon and Marsh could now receive as much as $200m a year in contingent commissions.
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The Spitzer-era ban on contingent commissions for the world’s biggest insurance brokers, Aon, Marsh and Willis, has been lifted. An equity analyst believes Aon and Marsh could now receive as much as $200m a year in contingent commissions. Willis, however, has stood by its commitment not to accept the controversial payments.
The big three brokers were banned form accepting the payments from insurers for placing business with them after former New York attorney general Eliot Spitzer revealed evidence of bid-rigging at Marsh in 2004.
The new agreements end many of the requirements imposed by the settlements signed in 2005. They no longer limit the kinds of compensation the brokers can receive and lower the compensation disclosure requirements to clients.
The big three stand to benefit greatly from the development.
“It will have a threefold positive impact on the brokers,” said Alan Devlin, equity analyst at Atlantic Equities, in a...
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