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 last month 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.

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.

Since those revelations, the major brokerages have agreed to drop volume-based contingency fees and pay more than $1 billion in restitution. Zurich American Insurance was the most recent carrier to strike a deal, agreeing 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.”

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.

Besides RIMS leaders, among those attending the meeting were:

o Foreign risk management groups, including the Association of Insurance and Risk Managers, based in the United Kingdom, the Federation of European Risk Management Associations, and theInternational Federation of Risk and Insurance Management Associations.

o Top brokerage officials, including the Council of Insurance Agents and Brokers, as well as individual mega-brokers such as Aon, Marsh, Gallagher and Willis.

o Leading carrier representatives from individual insurers, such as FM Global, Liberty Mutual and Zurich North America, along with the Property Casualty Insurers Association of America.

o Regulators, including the New York Insurance Department and the Financial Services Commission of Ontario.

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