September 8, 2006 by Canadian Underwriter
Aon Corp. is the newest of a number of brokers who have the go-ahead to accept profit-based commissions from insurers under the terms that the broker is acting as the insurers managing general agent or underwriting manager.
The agreement, reached with New York Attorney General Eliot Spitzer, New York Superintendent of Insurance Howard Mills, Illinois Attorney General Lisa Madigan, Illinois Director of Insurance Michael T. McRaith and Connecticut Attorney General Richard Blumenthal, amends Aons March 2005 settlement with the state authorities. In this settlement the broker agreed to stop the practice of receiveing contingent commissions from its insurer clients.
Marsh Inc. and Willis Group Holdings Ltd. have already reached similar agreements state officials.
In a press release Aon’s president and chief executive officer Greg Case said the amendment will give Aon more flexibility to build and control insurer client relationships and added that this will not only benefit Aon but also the insurer and the insureds.
“Aon remains committed to the highest levels of client focus and transparency, and this amendment is entirely consistent with those values,” Case said.