Secret home insurance commissions paid to landlords and freeholders

[honeybee13]

Secret home insurance commissions raking in millions for landlords in England and Wales | Leasehold | The Guardian

WWW.THEGUARDIAN.COM

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Insurers have banked huge hidden payments for buildings cover over many years, experts say

 

[unclebulgaria67]

I just wonder whether these commission payments have always existed.

I can remember when working in financial services, that there were employees whose sole job was to negotiate commission amounts and find ways to increase profitability.  On a regular basis, we would be contacted by companies large and small looking to make deals.

The other aspect to the commissions  is that If there is a significant amount to be paid, the Insurers will find ways to reduce the level of the Insurance cover. So those needing to protect their homes are not only paying higher premiums, but they probably have worse cover.

[lolerz]

These still exist and are commonplace.

It's normally in return for managing agents etc handling the day to day part of the claims instead of the insurance company (essentially all the insurance company has to do is approve the invoice and pay out).

The issue is where it's kept secret. Good freeholders/managing agents will be upfront about this (and should be as per FCA guidelines).