New York-based Marsh & McLennan Cos. Inc. says it will no longer accept contingent commissions in the U.S. A five-year-old prohibition on the practice agreed upon by Marsh, Willis Group Holdings and Aon Corp. with regulators in three states was lifted in February.
"Serving our clients is our top priority," Joseph McSweeny, president, U.S. & Canada Division of Marsh said in a statement. "We will continue to distinguish ourselves through our teamwork, service, innovation and global reach."
According to the company, Marsh will not accept contingent commissions on any placements for any U.S. clients served by the firm’s core broking operations and will continue to provide detailed transactional disclosure to clients in its core brokerage operations, including all quotes received and compensation information.
However, Marsh said it would continue to collect enhanced commissions and fees for services from insurers with respect to its core broking operations. These forms of compensation, which are paid in consideration of Marsh's provision of specific services to insurers, are fixed in advance of insurance transactions and are not related to volume, retention, growth or profitability.
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