THE CONTROVERSY OVER contingent commissions among large insurance brokers continues, after last week's announcement by Aon Corp. that it will resume taking the payments.

As we report on page 1, Aon stated it will accept contingent and supplemental pay from underwriters on insurance placements where “appropriate and legally permissible.” Contingent commissions are legal in the United States, and supporters view them as akin to a sales incentive common in many other industries.

In a statement reacting to Aon's announcement, the Risk & Insurance Management Society Inc. said contingent commissions “pose an inherent conflict of interest and interfere with the relationship of trust between the broker and the insurance consumer.”

We couldn't agree more. When a broker's compensation is exclusively paid by the buyer, the broker has a powerful incentive to work exclusively on behalf of the buyer to obtain coverage with the best terms and conditions. That incentive is eroded, if not destroyed, when brokers also are compensated by the providers of coverage.

Aon is not the only broker to accept contingents. Marsh Inc. accepts them on smaller accounts and business placed by its agency platforms. Willis Group Holdings P.L.C, even though it has sworn off accepting contingents and condemns other brokers for taking them, continues to receive millions of dollars in contingents through its acquisition of Hilb, Rogal & Hobbs Co. Arthur J. Gallagher & Co. also accepts contingents, as do many smaller brokers.

RIMS cannot force brokers to stop accepting contingent commissions. Ultimately, it is up to buyers to confront their brokers and demand a change in policy. If buyers don't, contingents will continue and buyers will be the losers.