While Eliot Spitzer continues to investigate broker and insurer issues in New York, the National Association of Insurance Commissioners (NAIC) has got in on the act.

Possibly stung that they have never noticed anything odd about broker-insurer payments in the US, the NAIC has formed an “executive taskforce on broker activities” and is planning a public forum to examine issues relating to broker and insurer payments.

At the NAIC’s upcoming national meeting in Salt Lake City, consumers, producers and insurers will be represented in separate panels, in a bid to address key producer issues, from balancing producer and consumer interests, to current laws regarding producer response to customer inquiries.

The Spitzer investigations continue to reverberate around the industry in the US. Last week Marsh & McLennan announced it will lay off 2500 people in an effort to address its $US676 million fourth quarter loss, which was incurred as a result of a restructure and regulation settlements stemming from the Spitzer investigation.

And the investigation’s scope is widening. Last week major global operator The Principal Financial Group received a subpoena from Mr Spitzer, seeking information on payments to intermediaries selling its retirement products.

Controversy about the scope of the Spitzer investigations of finite reinsurance deals has also emerged. Mr Spitzer is reportedly investigating deals set up by Coral Re, a subsidiary of No 1 insurer American International Group. Coral Re went out of business in 1999, and the investigation is said to be based on deals going as far back as 1987.

No 2 broker Aon has also announced a $US190 million payment to policyholders and will make changes to end a bid-rigging investigation by New York and two other states.

Mr Spitzer said improper conduct “was pervasive at Aon. To its credit, however, the company has acknowledged the problems, has agreed to compensate policyholders and has adopted reforms that will provide greater accountability in the future.”

Aon CEO Patrick Ryan has also apologised to policyholders as part of the deal.