Premium prices could fall as a result of Eliot Spitzer's investigation into Marsh & McLennan (MMC), the company's chief executive Michael Cherkasky said.
Cherkasky said the Spitzer investigation into bid rigging in the US could push down premiums worldwide.
The issue at the centre of the probe, contingent commissions, is reported to have earned MMC $843m in revenue last year. The practice was abandoned at MMC when Spitzer's investigation was announced.
Cherkasky said the $843m would be kept within the market, “it follows that either rates fall or insurance companies have gotten a windfall,' he said.
