An attempt by broker Willis Australasia to introduce set commission rates could be dead in the water because major insurers say they’ve already negotiated lower rates.

Insurers have criticised Willis after it sent a letter to insurers signed by CEO Adam Garrard announcing the introduction of set commission rates from March 15.

The rates included commercial motor (12.5%), marine transit (20%), construction (22.5%), commercial property/liability, engineering, professional and financial risks (25%), and accident and health and travel (35%).

Willis claimed set commissions will standardise inconsistent rates in Australia and New Zealand.

But major insurers contacted by insuranceNEWS.com.au claim they’ve already been able to negotiate lower rates from Willis.

Allianz General Manager of Corporate Affairs Nicholas Scofield also criticised the Willis “attempt to unilaterally increase commissions”. He says Allianz believes the proposed rates are not sustainable.

“Nor are they in the best interests of their clients,” Mr Scofield said. “The best way to achieve their goal of increasing transparency would be to net all business and charge the client a fee commensurate with the value they add on each individual account.

“Discussions are continuing in a positive light but I think it’s fair to say they have exceeded their original timeframe and the commission levels [Willis wants] won’t be achieved.”

The Willis move comes despite criticism of commissions by Willis Chairman and CEO Joe Plumeri at the NIBA Convention in October.

 “I don’t like them because sometimes I think in this industry we blur who our client is,” Mr Plumeri said. “The client is not the insurance company – the client is the client, and the client is the one who should pay us.”

Willis Australasia CEO Adam Garrard did not respond to calls from insuranceNEWS.com.au for comment.