With earnings showing little improvement for the second quarter, and the soft market driving down broker commission income, the head of Marsh revealed today that the brokerage is looking to amend its agreement with New York that forced it to drop contingency fees.
Brian Storms, chairman and chief executive officer of Marsh, said during an analyst's conference call today that the firm is in the process of obtaining an amendment to its agreement with New York, which he said would allow the brokerage to charge insurers for specific services it provides to clients.
“I'm fairly confident we will have a very public statement on this,” said Mr. Storms, indicating that the final details of the compensation agreement were still being worked out. He declined to go into details but emphasized that the fees would not be volume-related.
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