Plaintiff state filed suit, alleging that insurance broker Marsh McLennan administered a well-orchestrated conspiracy among insurers American International Group, Inc. (AIG), ACE Ltd., The Chubb Corporation, and the Hartford Financial Services Group, Inc., to eliminate competition in the commercial insurance industry.
The complaint alleges that the insurers agreed to offer customers fictitious quotes, often referred to as “B quotes,” in order to
create the false impression that competitive bidding had produced the best possible price when, in fact, no competitive process had taken place.
The state settled with AIG for $9 million. $3 million of the settlement was distributed to 26 public entities in Ohio, representing 10% of what was paid in commercial casualty insurance premiums brokered through Marsh from 2001-2004. Approximately $4 million will be put aside in a fund that will be distributed by the court once the antitrust case has been completely resolved. The AG office Antitrust Revolving Fund received $805,000, and the AGO and Dept of Insurance received $950,000 in litigation costs. The state also reached a settlement with Marsh McLennan, under which Marsh agreed to pay $4.75 million and with ACE, which agreed to pay $1.97 million.