Contingent commission controversy stirred back up in US

The debate about whether or not commercial brokers should accept contingent commissions has heated up again, with brokerages drawing a line in the sand when it comes to whether or not they will use the remuneration approach.The New York Attorney General banned contingent commissions for the three global brokers, Willis, Marsh and Aon, in 2005.Five years later, the ban was lifted through an amended and restated agreement between brokers and regulators.Since that time, Aon Corporation issued a statement saying it will accept various forms of compensation, which may include supplemental and/or contingent commissions in areas of the world where it is legally permissible.The Risk and Insurance Management Society (RIMS) and Willis have each opposed this remuneration approach. Both have issued statements urging Aon to take a firmer approach to the acceptance of the commissions.”RIMS urges Aon to join other large brokers in agreeing not to accept contingent commissions,” said Scott Clark, RIMS secretary and director of RIMS external affairs committee. “Ultimately, we would like to see the insurance industry as a whole adopt practices that place the broker in a position that best serves purchasers of insurance.”