Willis Chairman and CEO Joe Plumeri has called on the insurance industry to show leadership amid the global economic downturn by abolishing contingent commissions.

In an address to a conference in Bermuda, Mr Plumeri said a need for greater transparency in business transactions gives the insurance industry the chance “to get rid of contingents once and for all”.

“Contingents represent manufactured revenue, not value added, and in the age of transparency that I hope is coming clients of every kind will buy on value because they will see and understand the value [brokers] deliver,” he said.

Mr Plumeri is an outspoken critic of commissions for intermediaries, and Willis voluntarily banned the practice in 2004.

During his address he told delegates the international insurance industry had demonstrated good management in avoiding the worst of the global downturn, and would benefit from emerging opportunities.

“In a time of fear, we offer security,” he said. “In a time of scarce credit, we provide capital. In a time of newfound risk awareness, we are the risk professionals.”