Service agreements unpopular

Risk & Insurance, Jan, 2005 by Graham Buck

The publication date for Marsh U.K.'s proposed changes to its practices, likely to coincide with a new business model for its U.S. parents, will be around January 15--the date when British financial sector watchdog, the Financial Services Authority, is due to begin regulating the insurance industry.

Marsh U.K. was not the only broker to say it would cease reliance on MSA revenues. A number of larger rivals such as Jardine Lloyd Thompson and Heath Lambert quickly followed suit.

A recent poll of U.K. risk managers found that 93 percent wanted contingent commissions to be banned outright or to be investigated by the FSA.