Jeffrey W. Greenberg, CEO and Chairman of Marsh & McLennan, the world's largest insurance broker, resigned Monday, according to the New York Times, to avoid an indictment of the corporation. Criminal prosecutions of individuals are still expected from New York Attorney General Eliot Spitzer. He and other state authorities are probing "contingency fees," and "placement service agreements" that have been controversial but commonplace between insurance brokers and insurance companies. Allegations of bid-rigging in commercial insurance have also surfaced, involving the state antitrust laws. Insurance Chief Quits in Inquiry Led by Spitzer (New York Times, October 26, 2004)
Posted by dougsimpson at October 26, 2004 07:37 AM | TrackBack