Connecticut Insurance

Connecticut has extended the investigation silent against potential conflicts of interest commercial insurance brokers, has the same problem, that the attention of officials in New York and California.

A team of several lawyers and investigators in Connecticut beginning with work on the issue in late April, roughly the same time as the investigation in New York and California has been publicly, Richard Blumenthal, Attorney General of Connecticut.

”Our focus is placed on the prevention of conflicts of interest and relevance and accuracy of information provided by clients of brokers to companies,”Mr. Blumenthal, said in an interview Saturday.

Corporate buyer to pay the commissions on insurance brokers to find them the best coverage at the best prices. But the broker also receive payments from insurance companies and sales volumes for the Conservation of application costs.

Investigators fear that, because of payments, brokers may not always in the best interest of their client companies. They are also concerned whether the deals with insurance companies are fully disclosed to clients.

The four mediators who are the heart of the debate is acknowledged that since late April, they receive citations of investigators from New York - Aon and Marsh Inc., worldwide on the two largest brokers - and Willis Group Holdings and Kaye Insurance Associates, to say the habit of noting regulatory applications and Web sites, they receive payments from insurance companies and they say they information to customers upon request.

The investigation widened last week with the Chubb Group, a large commercial insurer, the recognition that the first insurance company to be summoned investigators from New York. The Hartford Financial Services Group also said last week that they were asked by the New York Department of Insurance not to destroy all documents in its relations with brokers.

Insurance analysts estimate that payments from the insurance business grew, the brokerage firms’ net income over $ 700 million last year.

Mr. Blumenthal, whose state is home to dozens and small enterprises, through the purchase of insurance brokers, he said the first knowledge of a potential conflict of insurance brokers in an interview with a charity dinner earlier this year, with a steering group, was concerned about the assurance of his company.

”He told me in so many words, if you’re interested, as regards consumer protection, Mr. Blumenthal”rappeler”ne not understand why we consider how the insurance industry works, because we can not always fair.”

Mr. Blumenthal said he then talked with the leaders of insurance companies and brokerage firms, confirmed the system of bonuses and the conduct of forces in a number of large companies is too low. The feed-back”était that we should examine these practices,’’said Blumenthal.

He said that according to its usual procedures, he did not know of his investigation. He confirmed the investigation earlier this month an Associated Press reporter, asked if Connecticut was pursuing an investigation similar to that of New York and California.

Mr. Blumenthal said he was closely involved in several studies with Eliot Spitzer, New York, Attorney General and his staff have had more problems with brokers in the office of Mr. Spitzer and with investigators in California. But he would not say to what extent States have cooperated in their investigations.

The publication of Connecticut survey comes at a time when the insurance buyers of communication seem to be increasingly concerned about the long-standing practice of payments made by insurance companies the broker. Previously, buyers, also known as a risk manager, said they were largely satisfied with the insurance company paid.

But in recent weeks, a lively debate on the propriety of these payments is declared on industry Web sites. And this morning, a sampling of informal Advisen, a firm of insurance services, it is released, suggests that other misfortunes with nature and how they were brokering.