Marsh refuses contingent commissions in U.S. core broking segment

Published March 25th, 2010 - 12:57 GMT
Marsh, the world’s leading insurance broker and risk advisor, today issued the following statement, announcing details of its approach to market remuneration and contingent commissions in the U.S.
• Marsh will not accept contingent commissions on any placements for any U.S. clients served by the firm’s core broking operations. The firm will continue to provide detailed transactional disclosure to clients in its core brokerage operations, including all quotes received and compensation information.
• Marsh & McLennan Agency LLC and Marsh Consumer’s affinity, sponsored program and personal lines businesses will accept contingent commissions. For these segments, the firm will provide plain language disclosure that meets or exceeds New York's Regulation No. 194, as well as all other applicable legal and regulatory requirements.
• Marsh will 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.
“Serving our clients is our top priority,” said Joseph M. McSweeny, president, U.S. & Canada Division of Marsh. “We will continue to distinguish ourselves through our teamwork, service, innovation and global reach.”
Marsh has over 23,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with approximately 52,000 employees and annual revenue exceeding $10 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Kroll, the risk consulting firm; Mercer, the provider of HR and related financial advice and services; and Oliver Wyman, the management consultancy. MMC’s stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC’s Web Site is www.mmc.com. Marsh’s Web site is www.marsh.com.

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