Further to John Jackson's article (30 May Insurance Times), I write to represent the interests of those smaller intermediaries and brokers of which the majority would like to maintain commission in the current format.
I cannot remember more than one or two occasions in the last 20 years when a client has requested confirmation of the commission I have earned for placing an insurance policy. I suspect that this would go for the vast majority of other brokers.
I, therefore, think commission disclosure is something of a red herring as, let's face it, what clients or potential clients are only really interested in is the bottom line figure they are required to pay.
With regards to accountants or solicitors giving professional advice and charging a fee, we are different to them as we give professional advice for free and subsequently take our remuneration in the form of commission for the insurance policies we arrange.
Commission disclosure would be another nail in the coffin of the intermediary/broker market as disclosing commissions would no doubt confuse clients and drive them into the hands of direct insurers which presumably do not earn commission and therefore do not have to disclose their income/profit.I
In short, if it ain't broke, why fix it?
Swinford Insurance Consultants
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