The head of Willis Group yesterday called for an end to contingent commissions and “clear and complete details on broker compensation” in part of his larger appeal for industry reform.

Joe Plumeri, chairman and CEO of Willis Group, opened the annual Risk Insurance Managers conference in Philadelphia yesterday by telling a ballroom packed with delegates that their industry was at a crossroads.

His keynote speech focused on embracing change in light of recent investigations into the insurance industry.

Mr. Plumeri said that contingent commissions should not only be abolished throughout the industry “carriers shouldn't pay them and brokers should accept them”, but it must be made “100 percent clear who a broker is working for”.

He also told the gathering that it was time to reassess accepted industry practices in general.

“It shouldn't have to take outsiders asking questions for us to review our processes or to think about how we can be better. That is something we should ordain upon ourselves.

“Just answering questions and satisfying the regulators is not sufficient. We should have an ongoing review of our operations as the insurance industry is the indispensable lubricant of the economic engine,” he said.

Many in the audience applauded his calls to imagine an industry that offered, “best terms that don't really mean worst terms, a claims process that is “clear, fair, efficient and timely”.

“How about the next quality conference being set up and run by clients so it cannot be torn down by doubters who think the desired outcomes are too hard to accomplish,” he said.

“How about clear and complete details regarding broker compensation. Do we have the courage to pursue these kinds of big ideas? I think we should have it and I think we do have it.”

Mr. Plumeri proposed a new model for the industry that would be based upon three fundamental principles: client advocacy, transparency and innovation.

“Client advocacy is about listening not selling, it is about understanding the clients needs. Everybody in this room is different and should be treated differently,” he said adding that transparency goes beyond disclosing broker compensation.

“Transparency is about planning what we as the broker are going to do, where the carrier participation is going to be and ultimately how we are going to deliver what we promised.”

Technology was another sticking point with Mr. Plumeri noting that the industry loses “a lot of efficiency, values and service with systems that are as old as I am”.

“No longer should you accept as an excuse that you can't get paid quicker, we can't deliver the policy sooner simply because the computer are working at capacity. That's bananas. That makes no sense, don't stand for it.”

In his call for industry change, he cited Woolworth's, Kodak and AT&T as examples of companies that had not done so quickly enough.

“There is not, nor will there ever be a timeless business model for this or any other industry. Models are always subject to change no company or industry can afford to keep its head in the sand,” he said.