In October 2004, New York attorney general Elliot Spitzer stunned the market by announcing that he was carrying out a probe into the way that the (re)insurance market carried on its business, specifically looking at areas like contingent commissions, finite reinsurance and the rather murky world of fees. By doing so, he opened up a Pandora's box that has had the (re)insurance industry reeling ever since.
The initial stages of the investigation imputed an allegation of impropriety to Marsh and AIG, with two executives from the latter pleading guilty. The Spitzer investigation swiftly widened to include other companies, and then deepened as more areas of AIG and Marsh were targeted.
The investigation has now been rumbling on for more than a year, and shows very little sign of dying down at any point in the near future.
See full Annual Review 2005; The Spitzer Spectacle. - 12/6/2005 - insurancenewsnet.com
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