Marsh Pegs Contingency Payments at Center of Probe at $1.2 Billion in Past 18 Months

October 21, 2004

  • October 21, 2004 at 7:14 am
    Deidre says:
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    I’ve read the entire Complaint, and I can only think of one word to describe Marsh – DESPICABLE. If I may, on behalf of all former honest, hard-working and dedicated employees of Marsh and some of their predecessor firms who have suffered the inconvenience of being severed at the will of Marsh, I say to Mr. Spitzer, don’t throw the book at Marsh, throw the entire Library. Contrary to the inherent belief within that Organization, they are not “God”. Current Industry practices of profit commission or contingent commission based on the performance of a book of business with any given Insurer is commonplace and accepted Industry practice. Whether or not it is in the best interest of the client is indeed open to scrutiny, and the practice probably should end. But…as noted in the Complaint, to bully Insurers and threaten to “kill” them if they don’t comply with their (Marsh’s) demands, combined with making up fictitous quotes so that the incumbent Insurer “appears” to be more competitive, is out and out fraud. Go get ’em, Mr. Spitzer.

  • October 22, 2004 at 8:34 am
    john silverstein says:
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    insurance is not the only business that offers financial incentives in the business world. so lets stop acting naive and shocked by the actions.

    it looks like a few disgruntled people are striking back at their former employers, and the politcians are working on their re-election. thats what has prompted this latest firestorm of controversy. and after all is said and done, its really not the system that created this grab for greed, its the people in the system. lets just put all those people in the same prison with martha, ken lay and the rest of the corporate leaders….

  • October 22, 2004 at 5:05 am
    Jim says:
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    Remember Enron, a top energy broker? Remember Arthur J. Anderson, a top (or, the top) accounting firm? Who is next? Contingency commissions on a profitable book of business is commonplace in the insdustry. Fixing, rigging, or otherwise soliciting phony bids is, at the least, a betrayal of trust, and at worst, illegal. It seems as the big get bigger the line between right and wrong gets blurred. Maybe you lose sight of what’s permissable. Maybe you get to a size where you think you can do no wrong, as in, I want X result and I am who I am so it’s got to go my way, regardless.. (Something like our strategy for going into Iraq?) Just wondering…. Jim



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