Posted on 04 Mar 2010
After the ban on contingent commissions was lifted for the world's three biggest insurance brokers, Aon, Marsh and Willis, on-line publication "Reactions" spoke to Pat Gallagher, chairman, president and CEO of the fourth-largest US broker Arthur J Gallagher & Co to see what his opinion is on the controversial payments.
“I don’t think they should have been banned in the first place. It was ridiculous. I think the whole thing was a mess,” Gallagher told Reactions. “It cost me three years of growth and quarter of a billion dollars. I spent 4,500 man hours investigating my company and we never found one phony bid or phony quote.
“We spent 4,500 man hours of audit to discover we never did anything wrong and I ended up paying out $65m in return revenue to clients. Many of those were checks for $35 – give me a break,” he added.