Aon Decides to Take Contingent Commission After All
Insurance broker Aon Corp. said it will resume taking contingent commissions from insurers where they are allowed — reversing its policy on that form of compensation just six months after a legal settlement banning the volume-based payments was lifted.
In a press release, Steve McGill, chairman and chief executive officer of Chicago-based Aon Risk Solutions, said the firm has “conducted a great deal of research around broker compensation across the globe with a focus on serving the needs of our clients and competing on a level playing field in the marketplace…” It now finds no problem with the practice.
Among the other large brokers that were subject to prohibitions, Willis has made clear that it has no plans to accept the payments. The broker has established a web site to “educate” clients about the dangers of the payments and their allegedly detrimental effect on the insurance-buying process.
Marsh, which in March said it will not take contingent commissions in its brokerage business, will accept such payments in its agency subsidiary, Marsh & McLennan Agency.
July 22, 2010
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