Big Insurance Broker Rejects New Payments
Willis Group Holdings Ltd., the world's third-largest insurance broker, will not accept new incentive payments unless the insurers offering them make changes or explain them better, Chief Executive Joseph Plumeri said.
The payments could create conflicts of interest and disrupt relationships with the company's customers, Plumeri said Monday at an industry conference.
Willis and its competitors were forced to give up "contingent commissions" in 2004 after being accused of accepting payoffs from insurers to the detriment of clients.
Last year two insurers, Chubb Corp. and Travelers Cos., said they would replace the fees with a new kind of payment. "I can't tell the difference, frankly, between that and a contingent," Plumeri said.
Industry leader Marsh & McLennan Cos. and No. 2 Chicago-based Aon Corp. have said they are reviewing whether to accept the new payments.
Source: Source: CHICAGO TRIBUNE | Published on March 9, 2007
Are you a retail Agent Looking for a Quote?