Willis and Heath Lambert concerned that LMP amendments give rivals unfair advantage
The Beazley Working Party's proposed broker transparency framework is failing to attract the support of major brokers, market sources have warned.
Sources said the working party's commitment to putting a fourth box on the London Market Principles (LMP) slip to accommodate Marsh's internal model has sent ripples of discontent through the City, leaving some with "serious reservations".
Aon and Marsh have pledged their support for the framework which proposes amendments to the LMP slip in an effort to increase remuneration transparency.
But Willis and Heath Lambert have so far not offered support. Heath Lambert is understood to be anxious that a transparent market would give its rivals an unfair competitive advantage.
Sources said that the broker was concerned that smaller independent brokers, without dedicated retail networks in the US, could be removed from the distribution chain as London underwriters use US brokers directly and negotiate lower fees.
"Marsh as a global broker has the power to deal with its own retail networks in the US to drive its own income," said the source.
Willis is also understood to have concerns.
A source said: "Willis doesn't like the second box [premium commission paid to the retail broker]. It feels it hasn't had its say like Marsh and Aon."
But Willis rejected claims that it was disgruntled at the working group's concessions to Aon and Marsh.
A Willis spokesman said: "We have been part of the Beazley Working Group for several months now."
The Beazley Working Party and Heath Lambert declined to comment.