TRAVELERS PAYS $6M TO SETTLE BID-RIGGING CASE

US commercial p/c group Travelers Cos has agreed to pay $6m to settle a multi-state investigation into rigging of bids for large commercial p/c accounts. The Minnesota-based group reached the deal with regulators in Florida, eight other states and Washington DC who alleged that the company paid fees to broker Marsh & McLennan Cos to win accounts and failed to disclose the payments to clients. The settlement stems from the same investigation, initiated by former New York attorney general Eliot Spitzer, that forced Marsh and rivals Aon and Willis Group to stop accepting so-called contingent commissions from insurers. More than 10 other insurers have already reached settlements with federal and state regulators over the bid-rigging scheme. Meanwhile, Travelers said this week that it has settled a class-action shareholders lawsuit that accused the company failing to disclose the contingent fees and giving customers the impression of a competitive bidding process. Terms of the settlement were not disclosed. Both settlements remain subject to court approval.