Marsh hammered again

The investigations into broker/insurer malfeasance continued to make their presence felt last week, as Conn. Attorney General Richard Blumenthal announced the expansion of the state’s charges against Marsh. Blumenthal, never one to avoid the limelight, said
“We have uncovered powerful evidence of a systematic scheme to raise insurance prices,” Blumenthal said. “We also have strong evidence of bid rigging, victimizing specific Connecticut consumers and companies. In essence, Marsh established a toll both between insurers and consumers, and the toll exacted was heavy. Creating the illusion of free and open competition, insurers agreed to provide Marsh with rigged or fictitious quotes in exchange for the prospect of submitting winning bids on future placements. Marsh threatened retaliation against non-players.”
According to Insurance Journal;
“One insurer wrote about a Marsh “broking plan“: “This is another protection job… Our rating has risk at $890,000 and I advised (Marsh) that we could get to $850,000 if needed. (A Marsh broker) gave me song & dance that game plan is for AIG at $850,000 and not to commit our ability in writing!”
The amended complaint identifies several major Connecticut businesses that were harmed by Marsh’s bid-rigging and price-fixing plan, including Hubbell Inc., Kaman Corp., Hexcel Corp., and Bridgeport Hospital.
Marsh has about 2,800 policyholder clients in Connecticut – 300 of them large businesses or government entities. Its corporate clients in the state also include Bic Corporation, United Technologies Corporation, Carvel Corporation, Ethan Allen Furniture, Timex Corporation, Xerox Corporation and General Electric Company.
The company’s state and municipal clients include the Connecticut Department of Administrative Services (DAS), and the cities and towns of Hartford, New Haven, Stamford, Manchester, West Hartford, and West Haven. Marsh was also the insurance broker for several large, publicly supported state construction projects, including Adriaen’s Landing. Marsh’s nonprofit clients include Yale University, Mystic Seaport and the Save the Children Federation.
The announcement of the expanded charges against Marsh came the same day Blumenthal announced that insurer ACE Financial Solutions Inc. had agreed to pay $40,000 to the state to settle allegations for a scheme in which ACE paid Marsh a secret $50,000 commission to steer an $80 million state contract to the company.”
The scandal that will not go away lives on.
What does this mean for you?
Yet more evidence that crime doesn’t pay, and practices that were once accepted with a wink and a nod can get you in serious trouble.