Top brokers embroiled in FCA aviation conduct probe
Four of the biggest global brokers admit they are part of FCA aviation conduct probe
JLT, Aon, Marsh and Willis Towers Watson have admitted they are part of an FCA investigation into conduct in the aviation insurance broking market.
The probe involves accusations that brokers have been sharing competitively sensitive information in the aviation insurance and reinsurance sector, according to Marsh.
The FCA aviation conduct probe was first revealed by the Insurance Insider, which said the investigation involved five brokers in total, including JLT, Aon, Marsh and Willis Towers Watson.
JLT, Aon, Marsh and Willis Towers Watson have all issued statements confirming their involvement in the probe. Marsh said it had undergone an on-site inspection in its London office in relation to the probe. The FCA declined to comment.
JLT said: “The company is participating in this investigation and confirms that JLT Specialty is providing all appropriate assistance to the FCA.
“We are unable to comment on the ongoing investigation beyond saying that JLT takes all regulatory matters very seriously and has a constructive relationship with all the regulators that it works with across the JLT Group.”
Aon said: “The Financial Conduct Authority (FCA) in the United Kingdom is conducting an investigation into suspected conduct within the aviation broking industry, which for Aon in 2016 represented less than $100m in global revenue.
“Aon is working diligently with the FCA in order to ensure it can carry out its work as efficiently as possible.
“We cannot comment on the details of this investigation as it is ongoing, other than to say Aon takes compliance and regulatory issues extremely seriously and has a strong and respectful relationship with the regulator.”
‘Competitively sensitive information’
Marsh said: “In connection with a civil competition investigation that the Financial Conduct Authority is undertaking into the aviation insurance and reinsurance sector, the FCA recently conducted an on-site inspection at Marsh Limited’s office in London.
“The FCA indicated that it had reasonable grounds for suspecting that Marsh Limited and others have been sharing competitively sensitive information within the aviation (re)insurance sector.
“Marsh is cooperating fully with the FCA’s ongoing investigation and is conducting its own review with the assistance of outside counsel.”
Willis Towers Watson said: “The Financial Conduct Authority (FCA – the UK regulatory body) recently initiated an investigation into certain business practices. The focus of the investigation relates to and is limited to aviation broking. Willis Towers Watson is cooperating fully with the FCA in relation to its investigation.”