Insurers are bracing themselves for a storm as crusading New York Attorney General, Eliot Spitzer, turns his sights on the industry accusing it of widespread corruption.
The allegations have been made in a lawsuit filed against the United States’ largest broker, Marsh and McLennan. The only European company mentioned in the suit is Munich RE. It is alleged that Marsh and McLennan steered clients to insurers with whom it had lucrative payoff agreements and rigged contract bids so it appeared the company sought the best offer. Spitzer has cast himself as a crusader aiming to clean up corporate America. He has already squeezed 1.4 billion Euros out of the biggest banks on Wall Street after allegations that they were issuing conflicting advice to investors.