A group of 28 risk managers and senior executives from major brokers, insurers, trade associations and regulatory authorities held an invitation-only, closed-door meeting Wednesday in New York to discuss the controversial issue of insurance contract placements.

The meeting–convened by the Risk and Insurance Management Society as an “open forum”–did not allow press attendance.

Commercial insurance placement has been a touchy topic since New York Attorney General Eliot Spitzer presented evidence that major brokers and insurers had conspired to steer commercial customers to select carriers and rig bids on policies.

Since those revelations, the major brokerages have agreed to drop volume-based contingency fees and pay more than $1 billion in restitution. Zurich American last week agreed to pay $171.7 million to settle bid-rigging charges.

According to a RIMS account of the session, it involved a discussion of “integrity, transparency and client-centricity,” as well as how “to improve quality in insurance placement practices.”

The meeting, moderated by Ellen Vinck, president of the New York-based RIMS, brought together some top industry leaders for a “frank and interactive dialogue” to discuss the need for additional improvements in insurance placement practices, and gave participants an opportunity to discuss individual concerns regarding current practices, RIMS said.

The association added that “all constituents agreed on the need to improve the timeliness and accuracy surrounding the insurance placement process.” According to New York investigators, insurers over the years had paid brokers incentive fees that served as disguised kickbacks to steer commercial business their way–compensation that was not revealed to corporate insurance buyers.

RIMS said it reiterated that consistent and widespread use of its Quality Improvement Process and its tools and metrics would result in a “satisfactory and successful product.”

The meeting concluded with “a commitment from participants to reconvene within six months to follow improvements in the insurance placement process,” RIMS said.

Attending the meeting, listed in alphabetical order, were:

o Karen Beier, RIMS director, member and chapter services, as well as vice president of risk management at Shaklee Corp.

o Andrew Cornish, chairman of AIRMIC–the Association of Insurance and Risk Managers.

o Ken Crerar, president of the Council of Insurance Agents and Brokers, along with Alison Bowman, vice president of member services at the CIAB.

o Marie-Gemma Dequae, president of the Federation of European Risk Management Associations.

o Barbara Devine, vice-chair of the RIMS Quality Advisory Council, as well as vice president of risk management at Standard Parking Corp.

o Peter Durkalski, president of Arthur J. Gallagher & Company.

o Mike Fenlon, director of external affairs at RIMS, as well as corporate risk manager for United Parcel Service.

o Terry Fleming, a RIMS director and external affairs director for the division of risk management in Montgomery County, Md.

o Mike Gaona, audit director at RIMS.

o Kim Hunton, treasurer of the RIMS Canada Council, as well as risk manager for the City of Ottawa.

o Chris Johnson, senior vice president and manager of the Western Division at FM Global.

o Mike Koziol, assistant vice president and counsel at the Property Casualty Insurers Association of America.

o John Lumelleau, president and CEO at Lockton Companies.

o William Malloy, president of Marsh Inc.

o Richard Marko, senior vice president of national markets at Liberty Mutual.

o Jim McIntyre, Washington counsel for RIMS.

o Anne McNally, director of compliance at ABD Insurance and Financial Services.

o Susan Meltzer, president of theInternational Federation of Risk and Insurance Management Associations.

o Janice Ochenkowski, RIMS director and treasurer, as well as director of global risk management at Jones Lang LaSalle Inc.

o Mary Roth, executive director of RIMS.

o Patrick G. Ryan, executive chairman at Aon Corp.

o Audrey Samers, general counsel of the New York State Department of Insurance.

o Teresa Scott, executive vice president of strategic relationship management at Zurich North America.

o Grant Swanson, executive director of licensing in the market conduct division for the Financial Services Commission of Ontario.

o Jeffrey Vernor, chairman of the RIMS Quality Advisory Council.

o Ellen Vinck, president of RIMS, as well as vice president of risk management and benefits at BAE Systems Ship Repair.

o Mario Vitale, CEO of Willis North America.

Special Reports /

RIMS Holds Closed Meeting On Broker Placements

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