Boston-based insurer Liberty Mutual is vowing to fight charges that it has been involved in kickbacks and overpriced policies.

The New York and Connecticut attorneys-general have filed separate suits against the company – America’s sixth-largest casualty and property insurer.

They allege Liberty interfered with the broker-client relationship by offering substantial inducements for their business. They also argue that Liberty was one of several insurers in an anti-competitive customer allocation scheme led by Marsh & McLennan.

New York Attorney-General Eliot Spitzer pre-empted matters somewhat by saying it is “simply appalling that a major financial institution would rig bids and induce brokers and agents”.

He is seeking financial redress and, with his opposite number in Connecticut, a forced reorganisation of Liberty’s business practices.

Liberty has denied any wrongdoing, admitting only that two former “lower level” employees had seriously violated its standards of conduct.

The company says it is disappointed in the court actions. “We have tried to reach resolution and can only describe their settlement demands as excessive and unreasonable,” it said.

Meanwhile, the Ohio Attorney-General has filed a suit against Chubb Insurance over finite insurance contracts and the payment of contingent commissions.