NU Online News Service, July 19 , 3:40 p.m. EDT

Joe Plumeri, head of Willis Group Holdings, went beyond blastingthe potential conflicts for brokers accepting contingency fees tourge buyers to ask who "independent" agents actually work for in anopinion column in this week's National Underwriter.

Mr. Plumeri, chairman and chief executive officer of Willis,wrote in the July 19 "Final Say" that "whether you're a big globalbroker like Willis or a local insurance agency...you can only serveone master. It's either the carrier or the client. You can't workfor both."

Mr. Plumeri wrote that those who accept volume-based contingentbonuses might be tempted to compromise their primary duty to placea client's business with the best company for the best terms andprice, while profitability-based fee deals create a disincentive toprovide aggressive claims service.

"Willis, unlike most retail brokers and agents, has planted itsflag firmly on the side of its clients. That means not takingbonuses from insurance companies that would put us at odds with ourclients' best interests," he wrote.

Addressing a more fundamental issue, he added that when doingbusiness with an agent, buyers should be aware that "they aredealing with a sales representative of the insurance company. Thereis nothing 'independent' about an independent agent. They work forthe carrier, not the customer."

He also wrote that since "some agents count on these[contingent] payments for, maybe, 100 percent of their annualprofits...those who buy coverage through an agent should know thoseagents aren't obligated to get them the best price, terms andconditions, or fight for them when they have a claim. No amount ofcompensation disclosure will change that fact."

To read Mr. Plumeri's complete column, go to http://www.property-casualty.com/Issues/2010/July-19-2010/Pages/Who-Do-Your-Brokers.aspx.