MORE FEE DISCLOSURE IN U.K.
Risk managers in the United Kingdom are receiving information about remuneration from their brokers, according to a study. London-based Association of Insurance & Risk Managers found that 64 percent of respondents receive automatic disclosure of earnings from their brokers. In a June 2005 study, only 32 percent of respondents said their brokers automatically disclosed earnings. And nearly all respondents--95 percent--said they pay their broker fees rather than commissions, up slightly from 91 percent of respondents in the June survey.
BEECHER LAUNCHES NEW SOLUTION
Insurance broker Beecher Carlson has launched a new process it claims will help residential developers and builders cut the cost of premiums. The process perfects the integration of brokerage and captive management consulting. "With record-level insurance premiums being experienced in many states, fewer and fewer carriers offering builders adequate coverage and subcontractors facing unprecedented challenges to attain coverage, the construction industry is long overdue for a proven solution to overcome these obstacles," said John Jassmann, national sales leader and head of the firm's construction practice.
WILLIS EXPANDS JEWELRY PRACTICE
Insurance Broker Willis Group Holdings is acquiring Gueits, Adams & Co, a New York-based agency specializing in jewelers' block insurance. Gueits, Adams was founded in 1989 and earns about $4 million in revenues annually. Joe Plumeri, chairman and CEO of Willis, said the deal complements the acquisition of International Insurance Brokers earlier this year. Willis closed in January its acquisition of International Insurance Brokers, a Staten Island, N.Y. broker serving the needs of the armored car and check-cashing industries. Annual revenues from International Insurance Brokers were approximately $2 million.
BROKER MARKET SHARE UP
The results of the 2004 market share study by the Independent Insurance Agents & Brokers of America Inc., reinforces the consumer and business acceptance of the independent agency and broker distribution model, the CIAB said. During 2004, the property-casualty market grew to $457.68 billion in direct written premium, with the overall market increasing by $20.69 billion. About 60 percent of the increase, or the equivalent of about $12 billion, was due to the independent agency system, the CIAB said.
NEW PENSION PLAN FOR MARSH LTD.
Marsh Ltd., the U.K. arm of Marsh Inc., is replacing its defined-benefit pension plan based on final salary with a plan whose benefits will be calculated on a "career revalued" basis. No details were available about the number of participants in the MMC U.K. Pension Fund, or the plan's assets and liabilities. In its annual report for 2004, Marsh & McLennan Cos. Inc., the ultimate parent of Marsh Ltd., said its "significant" non-U.S. pension plans were underfunded by $1.12 billion and estimated it would pay about $163 million in non-U.S. pension benefits in 2005. In 2005, Marsh Ltd. had about 6,000 employees, though about 750 positions had been slated for elimination as part of a cost-cutting drive instigated after MMC's settlement with U.S. regulators. The changes to the plan will not affect benefits accrued before April 1.
May 1, 2006
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