The agreement, taking place on Wednesday, and amending its $50 million 2005 settlement reached with then-New York Attorney General Eliot Spitzer, follows in the footsteps of Marsh & McLennan Cos. Inc., which reached a similar agreement with New York authorities earlier this month.
Chicago-based brokerage Aon Corp., which reached a $190 million settlement in 2005 with authorities in Connecticut, Illinois and New York, has reached a similar service fees amendment with authorities in New York and Illinois and is “quite confident Connecticut regulators will sign very soon.”
In April 2005, Willis reached an agreement after concerns arose that the brokerage gave business to carriers that paid the highest contingent commissions, and it agreed to abolish contingent commissions and limit its form of compensation to fees from clients and commission on premiums paid by insurers in brokerage-related transactions.
Joe Plumeri, Willis’ chairman and chief executive officer, said that any enhanced regulatory flexibility in regard to its compensation will be applied against its principle of promoting the best interests of its clients.