Marsh has confirmed that negotiations are ongoing with insurers over its new business model. The report is expected to be published on 14 February.

It is understood that discussions have taken place with key customers on whether Marsh's retail operation offers a 2%-5% discount on the nett price of cover and the possibility that the market will pay extra fees for services offered by Marsh retail.

In a document circulating the market under the title "placement model proposal", Marsh hopes to sign up insurers to the discount offer, which it says will be passed "directly to and is for the benefit of Marsh clients".

The broker will also introduce a set of "Marsh placement protocols" under which Marsh will only disclose holding or quoted terms to another insurer in order to obtain follow line for lead terms. Marsh will only give a target or maximum price to insurers as an indication of the level of quote required to secure the business under client approval.

A Marsh spokesman said: "Work on our new business model is progressing. It is clearly of the utmost importance that our clients are comfortable with any model that is in development. We also need to ensure that Marsh is compensated for services we carry out on behalf of the insurance markets."