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

By Caroline McDonald

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 York Attorney General Office's probe of contingency fee irregularities and customer steering will speak at RIMS' upcoming conference about building client trust. [@@]

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

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

In the wake of the attorney general's charges both firms announced they would stop accepting placement agreement monies from insurers. Marsh agreed to pay $850 million to settle the suit and make payments to clients who were victimized. The firm said yesterday it was coming up with a new commission fee schedule to make up for $840 million in lost placement fees. Aon has reserved $50 million for a settlement with New York but so far has reached no agreement.

Mr. Cherkasky and Mr. Ryan are due at a panel scheduled for the RIMS Keynote Luncheon, during the RIMS 2005 Annual Conference & Exhibition. Set to appear with them are Susan R. Meltzer, assistant vice 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.

RIMS said the discussion will include ways to rebuild trust between brokers and clients, "one of the most timely, critical topics of the risk management and insurance industry in the wake of the recent investigations."

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

Other "hot" topics include, "The Marsh Settlement ? Should Policyholders Opt-in?" and "Broker Contingency Fees?What You Should Know, Parts 1 & 2." A panel representing various industry segments will participate in the "Terrorism Risk Insurance Act Update."

http://www.rims.org/RIMS2005

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

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