New York demand for commission disclosure OK by Willis
Willis boss Joe Plumeri has welcomed the New York State Insurance Department proposals to demand full transparency in broker compensation, calling the move “a validation” of Willis’ long-standing business policies and its fight for greater transparency in the industry.
“I commend Superintendent of Insurance Eric Dinallo, the New York State Insurance Department, and Attorney General Andrew Cuomo and his Office for taking this important step to protect the interests of insurance buyers,” Plumeri said. “Willis has long been committed to upholding the highest standards of integrity in our industry, and since 2004 we have fully and willingly disclosed to our clients the nature and amount of the compensation we receive for placing coverage with carriers. This proposed regulation is a validation of our firmly held position, and we hope it leads to an industry-wide standard that would apply to all brokers, no matter where they do business.”
Under the proposed regulation insurance “producers” will be required to reveal all compensation received, along with any business relationships the broker may have with the insurer. Insurance buyers also will have the right to receive information about any other quotes or alternative insurance products the broker considered and the compensation associated with those quotes or alternatives.
The proposals state: “Compensation means anything of value, including money, credits, loans, interest on premium, forgiveness of principal or interest, vacations, prizes, gifts or the payment of employee salaries, benefits or expenses, whether paid as commission or otherwise.”