Willis seeks transparency

Willis boss Joe Plumeri, has asked the Executives’ Club of Chicago for corporate America to embrace a new commitment to transparency and risk management to restore trust in business and the US economy.

And he said brokers must cease accepting contingent commission to lead the way.

Plumeri proposed four steps:

• Create a real contract with their customers and address conflicts of interest in the way they do business
• Elevate risk awareness at the senior executive and board levels and embrace comprehensive enterprise risk management
• Voluntarily disclose the risks they face and their levels of insurance coverage
• Do a better of job of explaining to the American people the positive role of business in society and the economy.

“True transparency means being up-front with our various stakeholders – whether they’re shareholders, clients, partners, employees or the communities in which we do business – and explaining what’s in it for them and what’s in it for us.

“It means educating them in a clear and straightforward way about the risks and opportunities so they can make informed decisions based on their best interests,” Plumeri said.

Hire chief risk officers

“Senior executives and company boards need to take a far broader and more comprehensive view of risk than they currently do and reflect this in their decision-making and oversight.

“Companies should move to hire chief risk officers and establish risk committees on their boards. They should demand true enterprise risk management because they need it now more than ever before.

“The fact is that the risks of doing business are increasing – and they’ll continue to increase,” Plumeri said.

Contingent commission

Plumeri urged businesses to manage conflicts of interest transparently and resolve them in the interests of their customers, using broker to contingent commission as an example.

“Many in our industry believe that simply telling clients that they are taking contingents makes it ok. I disagree. With contingents, telling your clients you take them does not resolve the conflict,” he said.

“We’ve already decided at Willis that we’re not going to go back to the old ways – we’re looking to the future and we will continue to put in place the measures that will enhance trust and transparency, not undermine it.

“It may mean that Willis will be the only company not taking contingent commissions – but that's ok with me,” Plumeri said.