New York Attorney General Eliot Spitzer probe targets Marsh & McLennan Cos., Aon Corp. and Willis Group Holdings Ltd. and other top insurance brokers that have more insiders on their boards than the majority of U.S. companies.

 

The Standard & Poor's 500 Index companies are 74% independent from their boards, while the six U.S. largest insurers show the figure of 60%, survey data shows.

 

``These are captive boards. They tend to be dominated by current and former industry executives,'' said former Texas Insurance Commissioner J. Robert Hunter.

 

``The board is supposed to protect shareholder value. If they are asleep at the switch or involved in business,” said Cynthia Richson, corporate governance officer at the Ohio Public Employees Retirement System in Columbus.

 

For instance, Marsh is currently 56% independent with seven current and former executives on its 16-member board. The company declined to comment.