Nearly two years after a scandal over commission kickbacks, the world's three major insurance brokerages are still recovering from the loss of contingent commissions, industry analysts warn.
The reduction in one-time charges (primarily related to the fee investigation) as well as a reduction in expenses should help brokers improve their net earnings in 2007, according to a recent review of the U.S. insurance brokerage industry by James Auden, an analyst with Fitch Ratings in Chicago.
However, he said, brokers will still face challenges to continue organic growth at past-year levels in the face of a deepening soft market that will affect commissions and revenues.
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