Insurance broker Willis Group Holdings has begun an internal investigation into its discovery of about $28 million in fraudulent overstatements of commissions and fees between 2005 and 2011 in its employee benefits operations.

The soft property-casualty market is staying around for at least another year, according to Willis Group Holdings’ forecast for 2011, which goes as far as to encourage insurance buyers to take “smart advantage” of the ongoing soft market.

Martin Sullivan, a former American International Group chief executive, has been chosen to run a new insurance brokerage business for Willis Group, the third largest insurance broker.

Several property-casualty industry experts will be discussing the current economic climate and how to weather the crisis during a panel discussion at the 2010 Capital I Day March 19.

One thing is certain when New York insurance regulators enact their new broker compensation and disclosure rules: Chaos will follow because a number of situations are closely tied to their implementation.

Regulators in three states have lifted a five-year-old prohibition on contingent commissions for some of the nation’s largest brokerages in return for greater transparency on agent and broker compensation.

With New York regulators unveiling a new broker compensation disclosure rule promoting greater openness in transactions, the head of Willis Group Holdings said the move is not “true transparency.”

Citing his role in “a decade of expansion,” the board of directors for Willis Group Holdings extended the contract of its chairman and chief executive officer, Joseph J. Plumeri, through July 7, 2013.

Reinsurers rates for January renewals softened, buoyed by improved financial markets and fewer catastrophes in 2009, according to BestWeek.

Shareholders of Willis Group Holdings Ltd., a global insurance broker, approved changing the place of incorporation of the parent company of the Willis Group from Bermuda to Ireland at a special meeting.