Broker claims it is the only firm to take a stand.
Willis has claimed that the insurance industry has failed on its own to reform the practice of contingent commission payments to brokers and says regulators must finish the job started by former Attorney General Eliot Spitzer in 2004.
Don Bailey, CEO of Willis North America, was speaking to members of the New York Superintendent of Insurance and Attorney General’s panel, on Friday
Among the brokers to testify at hearings today in Manhattan, Willis claims it was the only one to take a stand against the practice of insurance companies paying contingent commissions to brokers.
Bailey said: “The practice of contingent commission payments is fundamentally at odds with the best interest of clients.
“We continue to believe strongly that former Attorney General Spitzer missed a great opportunity to do the right thing by banning all brokers from accepting contingents. For whatever reason, he left the job unfinished. The result is the largest brokers now work within new boundaries, but the rest of the industry does not work within the same boundaries.
“If we are truly serious about raising standards in our industry, a formal ban of contingent compensation agreements is the right thing to do.”
He continued: “We can live with regulation and the higher cost of compliance – even if it makes us work harder to drive more profitability for our business. But we believe we have a right to expect that this regulation be uniform across the industry.”
Bailey’s testimony was the second time he has addressed a public hearing in New York State this month as officials consider a proposed regulation on the subject of insurance producer compensation standards and disclosure.
