Because the Spitzer investigation of Marsh et al., is proceeding quickly and spilling over into other states as more attorneys general and insurance regulators get involved, a monthly publication such as Rough Notes cannot provide up-to-the-minute coverage of developments. However, Rough Notes feels that the expanding investigation is too important to not discuss inasmuch as it is becoming increasingly clear that the way in which the insurance product is marketed will almost undoubtedly change, as very well may the way in which insurance is regulated.
In the following pages, three of our veteran industry observers examine the impact that the turmoil over the role of contingent commissions could have on various segments of the insurance transaction. Mike Moody talks to a number of risk managers, all of whom are in agreement that their workload is going to increase substantially and all of whom feel that the trust relationship that is needed between broker and client may be extremely difficult to regain. Phil Zinkewicz looks at the impact on independent agents and finds that many believe that agents may well be swept into the investigation as it spreads to other states. A number of prominent industry watchers comment that agents probably will have to change the way in which they are compensated. Kevin Hennosy focuses his attention on the regulatory arena and the apparent failure of state regulators to do the job that was required of them under the McCarran-Ferguson Act.