Gallagher Follows Marsh, Willis Group in Seeking Additional Commissions in London Market
The London arm of Arthur J. Gallagher & Co., Gallagher London, has followed Will Group Holdings Ltd. an Marsh Inc. in approaching insurance companies and clients over is plans to charge insurers an additional 1.5% commission for placing London market business.
A spokesman for the brokerage said that its London office sent out a letter Monday informing more than 60 insurers and clients that starting next year it will seek to apply an additional commission, known as “Gallagher Market Commission,” of 1.5%.
The spokesman said that the commission was “fair” and was an attempt to restore the “balance of earnings.”
Average commissions at Gallagher London have been cut from 8.0% to 6.2% over the last two years, while its inwards book of business has doubled to $1.2 billion over the last three years, he noted.
Willis Group Holdings Ltd. and Marsh Inc. recently unveiled plans to seek an additional 2.5% charge from insurers in the United Kingdom. Aon Corp. already uses such a 2.5% levy.
Published on November 21, 2007
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