Marsh & McLennan, the world's largest insurance broker and risk manager, has said that it can now share profits from insurers in cases where it is clearly representing that company.
The US company said in a filing with the Securities and Exchange Commission that a recent change to the settlement reached last year with New York attorney general Eliot Spitzer meant that it could now take commissions from insurance companies in some cases.
Last year Marsh & McLennan paid $850 million in settlements after an industry wide investigation by the attorney general resulted in allegations of bid rigging and price fixing. As part of the settlement, the company agreed to a ban on contingent commissions, the payments from insurance companies to steer business their way.
However, an amendment to the deal means that where Marsh has been named as the agent for a specific insurance firm and places a line of business only with that insurer, the company is now able to share in the profits of that business.
Aon Corp, Marsh’s biggest competitor which agreed to forgo contingent commissions, said that it expected a similar result.