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Willis Will Take Contingents on Benefits Business

Willis Group Holdings P.L.C. said in a statement it will it will once again begin accepting traditional contingent commissions and bonus payments for its employee benefits business, effective April 1
February 22, 2012

Willis Group Holdings P.L.C. said in a statement it will it will once again begin accepting traditional contingent commissions and bonus payments for its employee benefits business, effective April 1. Business Insurance reports that during an investor call February 8, Willis Chairman and CEO Joe Plumeri said the brokerage was forced to do so because of changes in the way employee benefit insurers compensate brokers as a result of healthcare reform.

He stressed, though, that the change affects only employee benefits business. “We have long taken a strong stance against accepting contingent fees in any of our retail business,” Mr. Plumeri said. “We will continue to take the position across the remainder of our product line.” He said, however, that a result of the change in its employee benefits business, Willis is also reviewing its corporate policies, public documents and its compensation disclosure processes generally.

Willis stopped accepting contingent commissions amid then-New York Attorney General Eliot Spitzer's probe of the insurance industry. Willis has accepted some commissions on business it gained with its 2008 acquisition of Hilb Rogal & Hobbs Co., although it has been phasing out such pay.

Read more on the WIllis PLC commission agreement: Willis Will Take Contingents on Benefits Business (Business Insurance 2/14/2012)