Marsh hits insurers with new placement charge
Marsh has introduced a 2% “distribution brokerage” charge, imposed when placing cover for fee-paying clients.
A spokesman says the charge is required to maintain high levels of customer service.
“We advise clients and develop solutions across a range of complex and dynamic risk issues.
“To help them navigate this rapidly evolving landscape and to invest in current and future client offerings, Marsh Australia has introduced a brokerage charge on transactions where Marsh’s remuneration is fee-based.”
The spokesman says the charge is fully disclosed to clients and is consistent with structures applied elsewhere in the world.
AUB Group CEO and MD Mark Searles told insuranceNEWS.com.au that while he cannot comment on Marsh strategy, his group would not consider such a move.
“Unless it is something you can demonstrate the value behind, then it is not for us,” he said.
“It remains to be proved whether it will be a success, or whether it will be accepted.”
Insurers Suncorp and IAG and broker Willis Towers Watson declined to comment on the charge.