Reinsurance broker Cooper Gay has responded to the fallout from the Spitzer inquiry by launching a new risk management operation

CG Global Risk has been created to formally recognise the continuing separation of global insurance placements into retail client service and worldwide risk marketing, it added.

This will allow Cooper Gay's multinational clients to use the broker's client services on a discretionary basis, said Cooper Gay.

New York attorney general Eliot Spitzer is investigating the issue of tying among the larger brokers, which are accused of pressuring clients and insurers to use their reinsurance divisions rather than look for better deals on the open market.

As such, CG Global Risk will focus on providing independent global risk-transfer services in conjunction with retail brokers at the client's discretion, the company said.

Cooper Gay group chief executive Toby Esser will chair CG Global Risks.

He said: "We have long held that risk managers are seeking proven and viable alternatives to the inadequacies rampant in the one-stop-shopping formula that has been forced upon them in the insurance industry.

"CG Global Risk is an amalgam of both existing and new resources."

The company will be dually headquartered in the firm's New York and London offices, with staff based throughout the US, Latin America, Continental Europe and Singapore.

CG Global Risk co-managing directors Erik Nikodem and Emma Freedman have assembled an initial team of experienced brokers, and are currently recruiting additional sales staff.