Marsh & McLennan Companies, Inc. (MMC) announced today that Marsh Inc., its risk and insurance services subsidiary, will immediately suspend its practice of market services agreements (MSA) with insurance carriers.
The agreements, also known as placement service agreements (PSA), set forth contingency commissions paid by insurers to Marsh.
Today’s decision was made in light of the serious allegations and questions that have been raised about this long-standing industry practice by New Yrok Attorney General Eliot Spitzer.
Jeffrey W. Greenberg, chairman and chief executive officer of MMC, said today: “We are greatly disturbed by the allegations of wrongdoing. We take them very seriously, and we are conducting a thorough investigation of these allegations. As the facts are being reviewed, we believe it is in the best interest of our clients to suspend MSAs immediately.”
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