Arthur J Gallagher (AJG) has agreed to fork out $US27 million and reform its business practices in a bid to take the heat off investigations into the company’s contingent commission arrangements.

Under the settlement terms the international brokerage will establish a compensation fund for clients, stop collecting contingent commissions on retail business and disclose compensation for services.

Illinois Attorney-General Lisa Madigan says investigations revealed AJG “sought and obtained huge payments from insurers in return for steering them enough business”.

The settlement follows similar ones made by Marsh, AIG, Aon and Willis.