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Guy Carpenter to disclose broker fees

NEW YORK (Bloomberg) ? Guy Carpenter & Co., a reinsurance broker owned by Marsh & McLennan Cos., will increase disclosure about the fees it receives for arranging policies.

The New York-based broker created disclosure guidelines last year after New York Attorney General Eliot Spitzer accused Marsh in a lawsuit of bid-rigging and steering clients to insurers that made hidden payments. In a statement yesterday, Guy Carpenter said the rules will now apply to all clients.

Guy Carpenter helps insurers buy reinsurance policies from other underwriters to spread their risks from claims. The company said it will tell clients the source of all fees and how much it, as well as affiliated companies, expect to earn for arranging the policies.

The guidelines previously applied to the most common type of reinsurance coverage. Now they've been extended to one-off policies that have less standardised fee structures.

Guy Carpenter was not mentioned in Spitzer's October 14 suit. Marsh agreed to pay $850 million to settle the suit in January.