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UK regulator investigates aviation brokers

The UK’s Financial Conduct Authority (FCA) is investigating participants in the aviation insurance broking industry.

Marsh & McLennan, Willis Towers Watson, JLT, Aon and UIB have issued statements saying they are co-operating with the inquiry.

Marsh says the FCA has visited its London office and the company is completing its own review with assistance from outside counsel.

“The FCA indicated it had reasonable grounds for suspecting Marsh and others have been sharing competitively sensitive information within the aviation (re)insurance sector,” the US-based group said in a Securities and Exchange Commission filing on Friday.

Willis Towers Watson says the FCA informed its UK brokerage subsidiary earlier this month that it has opened a formal investigation into “possible agreements/concerted practices” in the sector.

Given the status of the inquiry, it is unable to assess the terms on which the investigation will be resolved, it says.

Both Willis Towers Watson and Aon say aviation broking represents less than $US100 million ($132 million) of their group revenues.

“We cannot comment on the details of this investigation because it is ongoing, other than to say Aon takes compliance and regulatory issues extremely seriously and has a strong and respectful relationship with the regulator,” Aon said.