Marsh UK chief executive Bruce Carnegie-Brown has thrown down the gauntlet to UK regional brokers, saying Marsh will aggressively target clients of brokers and networks using contingent commissions.
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Marsh UK chief executive Bruce Carnegie-Brown has thrown down the gauntlet to UK regional brokers, saying Marsh will aggressively target clients of brokers and networks using contingent commissions.
"There are many regional brokers still out there which have business models based on contingent commissions. We will let their clients know that we offer value and transparency," he said.
In response to speculation that Marsh will close some of its regional offices, he said that all the company's 24 UK locations would remain "in some form".
The comments came after Marsh published its new business model, which it hopes will recoup the £107m a year lost from scrapping contingent commissions in October 2004.
Carnegie-Brown said Marsh had agreed "in principle" with insurers to offer structured premium discounts of between 1% and 2%.
He added that insurers' "kneejerk reaction" to flat rates was making negotiations difficult.
Compared to Aon's expected 2% fee and Heath Lambert's 1% flat fee, Marsh will charge 0.75% of premium as a service charge to Lloyd's and certain specialist insurance markets.
Carnegie-Brown also said Marsh would continue to support Kinnect and may offer a further discount to underwriters using the platform.
' Marsh's broking division will only occupy the East Tower of its London headquarters, further to the 750 job losses declared this week.
Carnegie-Brown said the company's Mercer consulting division staff will move into the West Tower in a bid to "save costs". It shelved plans to build a new office for the Mercer division.
