Commission reflects extra work
We are a provincial broker operating mainly in the property owners market and, as we have several schemes with full delegated authority, we earn commission at 40%.
This does not distort the market nor the price the customer pays, but is purely to reflect the extra workload we take on ourselves and save the insurer.
We underwrite the risk, survey, produce all documentation and manage claims. But do you think a customer is going to take that into account if we have to discose commission, or is he just going to think, “I’m not dealing with those greedy people”?
Once again the FSA seems intent on imposing something for the sake of it without any real consideration or thought for the implications
Peter Sambrook
Insurance Services (Surrey)
