Settlements of bid-rigging and contingency fee abuse charges by top brokers might have resulted in a loss of credibility for corporate insurance buyers who had the wool pulled over their eyes, according to one risk manager who started the fight for greater transparency years ago.
"Let's say I was entitled to $600,000 in a broker settlement," explained Susan Meltzer, speaking in her capacity as president of the International Federation Of Risk & Insurance Management Associations. "In my view, that would be like telling the CFO that I've wasted that much money and that [New York Attorney General] Eliot Spitzer got it back for my company."
Ms. Meltzer pushed hard for broker compensation disclosure when she was president of RIMS in 1999-2000. The result was a "don't ask, don't tell" policy, in which brokers were obliged to reveal their financial arrangements with carriers if risk managers bothered to ask–and many did not.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
