Marsh, Aon CEOs To Address 'Trust' At RIMS Confab

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By Caroline McDonald

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NU Online News Service, March 2, 4:20 p.m.EST?The Risk & Insurance Management Society, Inc.announced today that heads of two brokerages burned by the New YorkAttorney General Office's probe of contingency fee irregularitiesand customer steering will speak at RIMS' upcoming conference aboutbuilding client trust. [@@]

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The organization said Michael G. Cherkasky, president and CEO ofNew York-based Marsh, and Patrick G. Ryan, chairman and CEO ofChicago-based Aon Corp., will appear together on a panel titled"Next Steps in the Client-Broker Relationship" on April 19 at thePhiladelphia Convention Center.

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Both Marsh and Aon have been investigated by the New YorkInsurance Department and New York Attorney General Eliot Spitzer.Mr. Spitzer's office alleged, in a suit against Marsh parent Marshand McLennan Companies, that Marsh and several large insurers hadschemed to rig bids and fix prices, and the carriers in exchangefor having business steered their way made payoffs to thebroker.

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In the wake of the attorney general's charges both firmsannounced they would stop accepting placement agreement monies frominsurers. Marsh agreed to pay $850 million to settle the suit andmake payments to clients who were victimized. The firm saidyesterday it was coming up with a new commission fee schedule tomake up for $840 million in lost placement fees. Aon has reserved$50 million for a settlement with New York but so far has reachedno agreement.

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Mr. Cherkasky and Mr. Ryan are due at a panel scheduled for theRIMS Keynote Luncheon, during the RIMS 2005 Annual Conference &Exhibition. Set to appear with them are Susan R. Meltzer, assistantvice president, Sun Life Financial and current president of IFRIMA;and Ellen Vinck, vice president of risk management and benefits,United States Marine Repair, Inc. and incoming RIMS president.

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RIMS said the discussion will include ways to rebuild trustbetween brokers and clients, "one of the most timely, criticaltopics of the risk management and insurance industry in the wake ofthe recent investigations."

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Also at the conference Joe Plumeri, chairman and CEO, WillisGroup, will be the general session keynote speaker April 18.

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Other "hot" topics include, "The Marsh Settlement ? ShouldPolicyholders Opt-in?" and "Broker Contingency Fees?What You ShouldKnow, Parts 1 & 2." A panel representing various industrysegments will participate in the "Terrorism Risk Insurance ActUpdate."

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http://www.rims.org/RIMS2005

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