Peter Den Decker, the president of the Federation of European Risk Managers Association (Ferma), is putting pressure on Aon to show more transparency over the controversial Aon Carrier Charger (ACC).
Den Decker says the ACC – a 3.5% commission charge for administrative services introduced in 2011 – lacked transparency.
The Ferma president is particularly concerned about cases where he believes Aon is placing the risk but carrying a very small administrative burden.
Ferma is concerned, like Lloyd’s, that the ACC lacks the fine details of exactly what administrative duties it has carried out to earn its commissions.
“That is a problem,” Den Decker told insurancetimes.co.uk. “Why not disclose it in a transparent way? That is the basis of how we can manage the conflict in a transparent way.”
Den Decker said insurers and brokers should concentrate on serving the customer instead of obsessing over when the market will turn hard.
He said: “We have very healthy market conditions and pricing. Whether it is hard or soft doesn’t matter. There is a lot of capacity for a decent price.”
Den Decker’s comments follow on from the recent advice from the Lloyd’s Management Assocation (LMA) to underwriters over the Bribery Act, which came into month this act.
Many underwriters are interpreting it as subtle message over how they should treat broker remuneration.
Aon has strongly defended the ACC, saying it is a simple way of replacing a previously complex process and said that it would not fall foul of the Bribery Act.
“There is no intention of this being a hidden increase. This is replacing charges that are already there.
“It’s about simplicity and reducing the complexity we have and making the whole process more straightforward,” a spokesman previously told insurancetimes.co.uk.
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