In late 2004, the NY Attorney General Eliot Spitzer, filed suit
against Marsh for bid-rigging and other illegal/questionable
activities that enhanced Marsh's income.
What the NY AG has dubbed as "kickbacks" where a long standing
practice called "contingent commission." In practice, an insurance
company will set out guidelines for business received by an insurance
broker (also known as a "book of business"). The guidelines can be
based on insurance premium volume, the client's insurance loss
performance, the insurance company's own performance, etc. If the
outcome meets the criteria, the insurance broker is entitled to a
"contingent commission." Please note that this is in addition to the
renumeration the insurance broker has already received.
The NY AG had accused Marsh of moving "books of business" to insurers
that were offering enhanced "contingent commission" structures.
Further, AG Spitzer alledges that Marsh failed to advise the clients
of increased income and also alledges that Marsh substantiated it's
changes of a client's insurance company by creating fraudulent quotes.
To be fair, many other large US brokerages were accused of similar practices.
It is my understanding that Marsh no longer accepts "contingent
commissions" and have adopted practices recommended by the NY AG.
Fyi, please consider the above an overview from 10,000ft above.
Sorry - I can not direct you to a code of conduct. I'm confident that
Marsh can offer such materials at request. |
