Clear and consistent disclosure is in the interests of all clients, says broker
Aon called for mandatory commission disclosure across the insurance industry, at a public hearing today in New York City.
Attorney General, Steve McGill, chairman and chief executive officer of Aon Risk Services, urged the New York State Department of Insurance to put in place comprehensive transparency and consent standards that apply to all insurance producers conducting business in the state.
‘At Aon, we believe in the fundamental principle that a client deserves to know whether its producer is working for the client or as an agent of an insurer, what insurers the producer approaches, how much the client will pay, and how the producer will be compensated,’ said McGill. ‘This is essential to enable the client to make informed choices, to avoid an actual or potential conflict of interest by the producer, and to produce the best and most competitive outcomes for clients.’
‘We strongly believe that it is in the best interests of all clients that the Department uses its authority to require mandatory, clear and consistent disclosure of producer compensation and to apply the same rules to all producers. In such an environment, producers that add value to their clients will flourish, and producers that do not add value will not. And this competitive environment will ultimately work to the benefit of clients.
‘Aon therefore recommends reinforcing the spirit of consumer advocacy and a free market by having every producer compete on the same terms and in the same manner, with required transparency in a simple and effective form. All producers should disclose whom they work for, what they do, how they do it, and what they are paid. This will enable clients to make more informed choices, and will also reinforce the competitiveness of the marketplace and the standards of excellence and professionalism in the industry.’