"Since late 2004, Marsh has not accepted contingent commissions. In addition, we are committed to complete transparency and disclose to our clients all compensation that we receive from insurers. Except for the world's four largest brokers, most other U.S. brokers and agents accept contingent commissions. This has led to an inequitable and un-level playing field, particularly with respect to the small commercial and middle market segments where Marsh competes with mid-sized and regional brokers and agents that accept contingent commissions.
In the United States, we are engaged in discussions with insurance carriers in the middle market and small commercial segments to begin to level the playing field through payment of enhanced commissions. The enhanced commission would be a fixed percentage of premium and would not be contingent or variable on volume, profitability or any other factor. Our larger clients would not be impacted by this initiative. The enhanced commission will be disclosed to clients up front prior to the time of placement and will be subject to their approval."