Aon: Clients' reaction 'muted' to return of contingent fees

Aon Corp. is getting a "muted" reaction from clients about the possibility it will bring back contingent commissions for brokering commercial insurance contracts, Chief Executive Greg Case said.

Based in Chicago, Aon also has local operations in Lake Forest, Downers Grove, Algonquin, Glenview, Rolling Meadows, Des Plaines and Bartlett.

Aon, the biggest insurance broker, has never collected such commissions extensively when it matches buyers and sellers of commercial insurance coverage, Case told investors and analysts on a conference call to discuss Aon's second-quarter earnings.

Aon Corp. said last week it is considering bringing back the once-hidden payments that insurers pay to supplement the fees it takes from the buyers of coverage. Marsh & McLennan Cos., ranked second by brokerage revenue, said in March it will take contingent commissions at its unit serving mid-size U.S. clients.

The controversial practice of taking such commissions was investigated in 2005 by several states, which then banned them. In February, regulators in New York, Connecticut and Illinois have lifted the ban on taking the commissions, provided that brokers disclose the contingent fees if clients ask about them.