Copying and distributing are prohibited without permission of the publisher
Editor’s remarks: Contingent commissions - A level playing field but an ugly game
09 March 2010
Marsh and Aon should be more vocal about whether they will accept contingent commissions now that their ban has been lifted.
The era of what the big brokers have been complaining was an “unlevel playing field” lasted five years. In February, the big three brokers reached agreement with the New York insurance department that they could accept contingent commissions again.
For those who slept through 2004 and 2005, contingent commissions are payments to brokers paid by insurers for placing business with them. Long before Eliot Spitzer was revealed to have a fondness for expensive prostitutes, he had displayed a talent for uncovering lurid revelations of his own when New York attorney general. In 2004, he revealed that Marsh had been bid-rigging and steering business to insurers that paid it the most contingent commissions.
The result was an unbalanced situation where Aon, Marsh, Willis and Arthur J Gallagher were forced to give up the controversial payments while their smaller rivals could carry on taking them.
You must be logged in to view this page.
If you are already a registered user please log in here.
Alternatively, you can request a free trial or subscribe. For more information contact sdexter@euromoneyplc.com or call +44 (0) 20 7779 8223.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
