The US insurance industry is gearing up to defend the practice of contingent commissions in Washington DC today.
Contingent commissions came under the spotlight after New York attorney general Eliot Spitzer said the practice of paying commissions was anti-competitive.
The accusations sent shock waves across the US and reverberated around the world as insurers and brokers rushed to withdraw the practice.
But the fight back will begin later today when the industry tells a Senate sub committee that corrupt relationships uncovered by Spitzer are restricted in scale and can be managed by greater transparency.
The sub-committee will also hear from Spitzer and California insurance commissioner John Garamendi, who is also investigating the industry.
Trade groups are expected to insist that insurers and brokers provide a valuable service to clients, despite allegations of corruption.
