The courts dealt the insurance industry two huge blows in the past few days, with brokers and top carrier executives convicted in separate trials–one having to do with bid-rigging, the other with cooking the books via a sham finite reinsurance deal. Any way you look at it, the reputation of the business for honesty and integrity took a real beating, and the feds might yet have bigger fish to fry.


On Friday, as reported by Phil Gusman, two former Marsh executives were found guilty in New York State Supreme Court of a felony monopoly charge for bid-rigging. (Click here for the full story.)

While the two defendants were acquitted of 15 other charges, including grand larceny and fraud, it's not good to have players at a major brokerage convicted of swindling their clients by deceiving them into thinking their risks were placed through the free market, when in fact a back room deal with carriers had been struck.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.