Plumeri Adds Fuel To His Tiff With Agents
By Mark E. Ruquet
NU Online News Service, April 26, 4:27 p.m. EDT?The head of Willis Group Holdings insurance brokerage has expanded on his controversial call for an end to incentive fee payments by insurers that riled Main Street agents last week.[@@]
The additional material enlarging on the comments of Joseph Plumeri, Willis chairman and chief executive officer, was posted on the company Web site.
Mr. Plumeri's new material followed a talk he gave in Philadelphia at the Risk and Insurance Management Society conference which drew fire from the Professional Insurance Agents of America (PIA) over his comments that in addition to big commercial brokers, everyone in the industry including small agent and broker operations should stop taking incentive payments from insurers.
Mr. Plumeri's firm announced it was ceasing such arrangements with carriers after it came under investigation for the practice which has been linked to bid-rigging and improper steering of customers. The company several weeks ago reached an agreement with New York and Minnesota attorneys general to repay $51 million to clients who may have been harmed.
Posted on the Web site is the head of the London-based brokerage's idea for a new business model for the insurance industry titled, "The Leadership Moment." The PIA criticized Mr. Plumeri, calling his remarks "hypocritical." It also questioned the timing of his remarks.
Willis said Mr. Plumeri believes the industry needs to concentrate on three concepts?client advocacy, transparency and innovation. These three concepts deal with the placement of insurance; delivering solutions, not just insurance products, to customers; and service, where policy issuance and the claims process becomes equally as important to a brokerage as selling.
In the paper, Willis calls on all brokerage parties to the insurance transaction, both retail and wholesale brokers, to embrace "full disclosure and unconditional transparency." The primary goal is to put the customer's best interest first in the process.
The full text of the Willis white paper is available at www.willis.com/Extras/RIMSNews.aspx.
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