Insurance brokers' fees in spotlight - papers 8 February

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Lloyd's of London's chief executive Nick Prettejohn has charged the FSA with being too soft on insurance brokers and underwriters on the issue of commissions and fees, The Daily Telegraph reports.

Instead of tip-toeing round the issue, Prettejohn has argued the regulator should “come off the fence” to impose mandatory disclosure rules on payments – of the kind that caused a scandal in the US last year. There, New York State Attorney General Eliot Spitzer forced an end to the common practice of underwriters paying kickbacks to brokers in return for business. "Mandatory disclosure is not just about a reaction to Spitzer. It represents the single most effective way of generating positive change in our industry, change that I know the FSA shares our desire to achieve," Prettejohn s...

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