NEW YORK (July 21, 2010) — Today, Aon Corporation, a leading global brokerage firm, issued a statement outlining its approach to market remuneration and contingent commissions. The firm has stated that it will accept various forms of compensation, which may include supplemental and/or contingent commissions in areas of the world where it is legally permissible. The Risk and Insurance Management Society, Inc. (RIMS) maintains its opposition to the practice of collecting contingent commissions and is disappointed in Aon’s decision.
“RIMS urges Aon to join other large brokers in agreeing not to accept contingent commissions,” says Scott Clark, RIMS secretary and director of RIMS External Affairs Committee and Risk and Benefits officer for Miami-Dade County School Board. “Ultimately, we would like to see the insurance industry as a whole adopt practices that place the broker in a position that best serves purchasers of insurance.”
RIMS has always maintained the position that contingent commissions should be universally banned and views Aon’s intentions as a step backwards with regard to the level of service it provides to its clients. RIMS will continue to call upon all brokers to refrain from accepting contingent commissions, as they pose an inherent conflict of interest and interfere with the relationship of trust between the broker and insurance consumer, regardless of the nature of the client or the intermediary. .
RIMS will continue to work closely with all parties on the issues of producer compensation and disclosure.