Just a few weeks ago the New York-based Risk and Insurance Management Society (RIMS) was saying it was quite relaxed about insurance brokers receiving commission from insurers and not disclosing them to their fee-paying clients.

But that was then. Now RIMS President Nancy Chambers has moved closer to the position of New York Attorney-General Eliot Spitzer, who is investigating major brokerages for what he alleges could be conflicts of interest. A statement released last week by Ms Chambers said brokers should be required to disclose details of their contingent fees.

That’s a change from a RIMS policy which is understood to have been in force since 1999, which said that brokers should have to disclose commissions only if the client asked.

Ms Chambers now says RIMS “has always advocated for an open and honest dialogue between brokers and risk managers. We believe that undisclosed contingency fees have the potential to compromise the very basis upon which this relationship is built.

“RIMS strongly advocates for complete transparency and full disclosure of compensation agreements without client request.”