Broker announces progress in persuading insurers to commit to new remuneration fees
Heath Lambert is "very close" to announcing that it has persuaded insurers to commit to paying a 1% remuneration fee, market sources have said.
The company is understood to be making an announcement about the success of its model "within weeks".
Heath Lambert revealed plans to charge a flat 1% commission on all business conducted on behalf of insurance companies in March. The broker said it had laid down the gauntlet to its competitors by declaring it would lead the way in the fight for transparency.
If it is successful in negotiating an agreement with the market, rivals Aon and Marsh may be forced to move towards a similar figure in their remuneration models.
Aon has committed itself to the Beazley Working Party's proposed model, which recommends that changes be made to the London Market Principles slip.
Marsh is also in talks with the Beazley group, but has so far failed to sign on the dotted line.
The Lloyd's Market Association (LMA) advocates a unified approach to broker models. However, it is yet to make any announcement about the practicalities of such an approach.
If there is official backing for Heath Lambert's model it could give rise to a number of models, contrary to the LMA aims, sources have speculated. Added to this there could also be a commission price war as Aon and Marsh battle to keep costs down.
Aon declined to comment. The LMA added that negotiations on the broker model were ongoing.