Connecticut Attorney General and insurance brokers Guy Carpenter & Company, and Excess Reinsurance, now Knightbrook Insurance, have come to $4.25m settlement to resolve the antitrust case which was initiated in October 2007.
Attorney General said that the settlement resolves claims that Guy Carpenter orchestrated a series of conspiracies in the reinsurance industry that illegally inflated insurance and reinsurance costs nationwide.
Under terms of the agreement, Guy Carpenter and Excess Reinsurance deny all liability, but will pay the state $4.25m to settle the lawsuit.
In addition, Guy Carpenter will undertake countrywide business reforms, including enhanced disclosure and a formalized system for obtaining competitive quotes to ensure its clients receive the best rates and terms for insurance.
In 2007, the state sued Guy Carpenter for allegedly orchestrating a series of conspiracies with dozens of reinsurers, including Excess Re in which Guy Carpenter was a part owner, which illegally inflated costs for insurance companies and consumers nationwide over several decades.
Attorney General George Jepsen said that like the lawsuit, this settlement is ground-breaking in that it requires Guy Carpenter and a number of reinsurers to change the way they conduct business – not just in Connecticut, but on a nationwide basis.
"As a result of the business reforms that Guy Carpenter has agreed to, the market for reinsurance will be more transparent, more competitive and, ultimately, may lead to lower prices for insurance," Jepsen said.