US insurance scandal set to be focus of Senate inquiry

The Independent
By Katherine Griffiths in New York
Published : 06 November 2004

The US Senate is about to open an investigation into allegations that some of America's largest insurers and brokers have taken part in schemes to rig insurance bids and to gain inappropriate fees from customers.

There will be a hearing on Capitol Hill within the next few weeks at which the behaviour of Marsh & McLennan and Aon, the two biggest brokers in the US, is put in the spotlight.

The inquiry will be led by the Republican Senator from Illinois, Peter Fitzgerald, who is chairman of the government sub- committee on financial management. Mr Fitzgerald, who has a reputation for pursuing America's financial companies over various misdemeanours, also led an investigation into the mutual fund sector earlier this year which resulted in companies agreeing to lower their charges for ordinary investors.

The Senate inquiry will add to the pressure on the insurers and brokers, after Eliot Spitzer, New York's attorney general, launched a lawsuit last month against Marsh. Mr Spitzer also named a number of insurers in his case, including Ace and American International Group. He may widen his lawsuit further and is looking closely at the business practices of Aon.

http://news.independent.co.uk/business/news/story.jsp?story=580032

My hero:

This probably won't be whitewashed much...

that`s old school-they`ll use the new version-invisible press reporting and disappearing documents..posted one day -gone the next. Orwell was right he just got the hardware wrong. hide your books and papers cause that is all we will have left.

to committ fraud and rip people off. They obviously feel very confident that this is the climate to do this in. No one is watching, and if noticed will avert their gaze or slap them on the wrist.

I'm getting ripped off by an insurance company right now. All the lawyers in my office know it and it is continuing with impunity. I'll have to make the effort to take of it again next week. The first effort failed.