Brokers should disclose paid commissions to both insurers and the insured, the Lloyd's Market Association (LMA) declared this week.
The LMA's Beazley working party, established to investigate commission disclosure in the aftermath of the Spitzer investigation, called on the FSA to make transparency mandatory.
"We want to push the FSA to be more demonstrative on how they want [transparency] to be handled," said LMA chairman and chief executive of Ace European group, Andrew Kendrick. "There are too many interests here, there has been obstruction by some. The FSA needs to intervene here."
Andrew Beazley, chief executive of Beazley and chairman of the working party added: "We want to know what the FSA sees as transparency and how long they will give us to get that."
The LMA said full transparency should be mandated in both the subscription and non-subscription markets.
"US-owned brokers like Marsh, Aon and Willis are moving towards full transparency, while smaller independent brokers may not be so transparent because it is not in the rules," said Kendrick.
Full disclosure, he said, would level the playing field.
The LMA admits London brokers are split over how to move the issue forward. While Marsh and Aon have agreed full transparency others are not so keen on forcing the entire market to disclose commissions.
One senior broker said:
"It is what Marsh, Aon and Willis have decided to do, and it could give them a competitive advantage.
"I think the LMA is widely off the mark. The non-subscription market has recommended that Toba's be amended to remind clients they can ask about commissions, and the FSA thinks that is sufficient."
