But most rated participants in the industry continue to have negative S&P outlooks, including the number one player and initial focus of the investigations, Marsh Inc.

Last October, Mr. Spitzer revealed an investigation that initially focused on bid-rigging at Marsh linked to carriers paying so-called contingent commissions with based on the volume of business that was sent their way.

S&P analyst Donovan Fraser noted that before the investigations New York-based Marsh had a 20 percent Rate of Return. In addition to the $850 million settlement costs, the company lost its contingent commissions, which provided a sizable percentage of its net income resulting in a rate of return of 7 percent.

"We are waiting to see whether any more significant legal issues will develop for the company, and whether it can emerge from the taint that surrounds it to prosper in a business environment far different than the one that existed two years ago," Mr. Fraser said.

Aon and Willis have weaned themselves from the contingent commissions by reducing debt loads and cutting expenses. As the top players in the space, they have taken the lead in acquisitions but will now have to curtail those activities in an era of reduced revenue, the S&P report said.

And finally, brokerages will have to raise commissions to make up for the lost contingent fees. The generally softening of commercial cover could also lead to greater purchases and thus more brokerage revenue.

"But because policies are generally placed annually, we believe the impact of this will be gradual," Mr. Fraser said.