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The future for contingent commissions
22 February 2010
With Aon, Marsh and Willis now able to accept contingent commissions again, the market is abuzz with questions about which of them will accept the controversial payments, how much business this could bring and what buyers’ reaction will be.
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contingent commissions
marsh
aon
willis
don bailey
insurance information institute
With the ban on contingent commissions lifted for the world’s three biggest insurance brokers, Aon, Marsh and Willis, the companies now have the potential to reap revenue that for the past five years has only been available to their smaller sized competition.
Marsh & McLennan Companies (MMC), Aon and Wills have all entered into agreements with the attorney general of the state of New York and the superintendent of insurance of the state of New York. The new agreements end many of the requirements imposed by the settlements signed in 2005, after former New York attorney general Eliot Spitzer revealed evidence of bid-rigging at Marsh in 2004. This means there is no longer a limit on the kinds of compensation the brokers can receive.
The new agreements also require brokers and agents to describe to consumers their role in the transaction and how they get paid, and prohibit reinsurance brokerage...
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