Chubb Settles Bid-Rigging Inquiry for $17 Million
Insurance company Chubb said it unknowingly profited from the
bid-rigging activities of others and agreed to pay $17 million as part of a settlement with attorneys general in three states.
Chubb said the settlement resolves all issues arising out of investigations into pricing practices in the property-casualty insurance market. Investigations by New York, Connecticut and Illinois officials concluded that Chubb did not participate in illegal bid rigging, the company said.
"Chubb acknowledged that it appears to have unknowingly benefited from the bid-rigging activities of others in the excess casualty market, which may have provided Chubb with an
advantage in retaining certain renewal business," the company said.
Chubb agreed to contribute $15 million to a settlement fund established for the benefit of these customers. Chubb has also agreed to pay $2 million to help defray the costs of the
investigations by the attorneys general.