Marsh & McLennan suspends five

BELEAGUERED insurance broker Marsh & McLennan has suspended five staff in a desperate bid to claw back credibility after being sued by New York Attorney General Eliot Spitzer for allegedly colluding with insurers for fees.

The firm refused to disclose the identities of the employees, but said they were linked to the scandal.

The Wall Street Journal, however, named four them as William Gilman, Ed McNenny, Greg Doherty and Gilman's daughter, Samantha Gilman.

Spitzer's action accuses Marsh & McLennan of collusion with insurers, including the giant American International Group, to fabricate bids on policies to create the appearance that insurers were competing for their business, when behind the scenes Marsh and the insurers had already secretly allocated business.

The crisis engulfing Marsh & McLennan widened when the Minnesota Attorney General and state Commerce Commissioner both said they plan to investigate whether similar bid-rigging has gone on in their state. It joins several states including California and Connecticut investigating the practice.

Minnesota Governor Tim Pawlenty said: 'While there have been no complaints about this activity, we need to take appropriate action to ensure the marketplace is not being manipulated through under-the-table deals.'

Meanwhile, Dutch insurer ING admitted it had received a subpoena for information.