Marsh & McLennan Companies Inc., the US top insurance broker, will pay $850 million in restitution over four years to policyholders to settle the probe into its practices by New York Attorney General Eliot Spitzer. The investigation started in October 2004 focused on allegedly bid-rigging practices in the insurance industry, based on the suspicion that contingent commissions brokers received from insurers tempted them to steer business to those with highest commissions instead of seeking best value for the client.

Marsh & McLennan has also pledged to change its practices and issue a public apology qualifying its conduct as “unlawful” and “shameful”.

Michael G. Cherkasky, Marsh’s president and chief executive officer, said the settlement "is a significant step forward" for the company.

"We will set the standard for transparency and demonstrate Marsh’s commitment to being the industry leader for ethical business practice and client service," Cherkasky said in a statement.