NU Online News Service, April 23, 3:35 p.m. EDT

Willis Group Holdings said it will unveil an Internet-based campaign to educate insurance buyers about the conflicts of contingent commissions at the Risk and Insurance Management Society meeting in Boston.

Joseph J. Plumeri, chairman and chief executive officer of Willis Group, and Don Bailey, chairman and CEO of Willis North America, will launch the campaign during a press conference on Monday, the firm announced.

Willis voluntarily gave up contingent commissions in 2004 before three other global brokers were forced to do so in the midst of a New York State probe that revealed brokers were taking hidden fees to steer commercial clients to insurers involved in a price-fixing scheme.

The payments at issue are controversial year-end bonuses that insurance carriers pay to retail agents and brokers based on the volume and profitability of the business they give to carriers.

Willis said this sets up a conflict of interest, because a broker, who is supposed to act on the client's behalf, is financially incentivized by contingent commissions to align their interests with the insurance carrier, whose business model is based on increasing premiums and lowering claims costs.

The 2004-2005 agreements were rolled back earlier this year, and Willis has publicly stated that it will refuse to accept any contingents because of the inherent conflict of interest.

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Willis To Launch Fee Conflict Awareness Program

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