Impact of Spitzer Broker Fraud Charges Felt at Marsh and Beyond
National News • October 18, 2004
New York Attorney General Eliot Spitzer's filing last Thursday of charges against giant insurance broker Marsh for alleged commercial account steering and bid rigging has already had significant ...
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Subject: Spitzer's insurance investigation and charges
Posted On: October 18, 2004, 4:50 pm CDT
Posted By: Lori
Comment:
I agree. Contingency agreements are not illegal for insurance carriers and agents/brokers, just as they are not illegal in any other industry. If I want to purchase a digital camera, do I care what SONY is paying the dealer to get him to push SONY's cameras on me? Not if I'm an educated buyer. Are risk managers not educated buyers -- especially those who represent Marsh's Fortune 500 and large public entity clients? Come on.
Unfortunately, Spitzer's witch hunt has also turned up criminal activity on the part of company and brokerage employees. And that is lending credence to Spitzer's entire investigation at a very opportune (election) time.
The media, likewise, has done the insurance industry -- and the general public -- a disservice by not making any distinction between criminal price-fixing and collusion, and legitimate contingency or profit sharing contracts used as a standard compensation tool for agents and brokers.
Don't demonize the entire brokerage community because of the activities at Marsh. This is their third strike in a year's time -- yet the media wants to proclaim this as industry-wide corruption, rather than Marsh's corporate culture gone bad.
Subject: Spitzer's insurance investigation and charges
Unfortunately, Spitzer's witch hunt has also turned up criminal activity on the part of company and brokerage employees. And that is lending credence to Spitzer's entire investigation at a very opportune (election) time.
The media, likewise, has done the insurance industry -- and the general public -- a disservice by not making any distinction between criminal price-fixing and collusion, and legitimate contingency or profit sharing contracts used as a standard compensation tool for agents and brokers.
Don't demonize the entire brokerage community because of the activities at Marsh. This is their third strike in a year's time -- yet the media wants to proclaim this as industry-wide corruption, rather than Marsh's corporate culture gone bad.