With many insurance brokers and property managing agents inflating premiums to unreasonable levels in a bid to gain ‘secret commissions’, is it just a matter of time before the property insurance sector’s secret profit becomes public knowledge?
Launched in 2016, M2 Recovery seeks to identify and ultimately recover secret insurance commission payments that have been passed onto the property owner. This ‘secret commission’ can mean a lack of fair competition within the insurance sector with commercial clients unable to make an informed comparison between insurers. I believe this practice needs to be highlighted, as it ultimately leads to excessive insurance premiums being charged to the property owner.

The idea that commission is paid to those arranging insurance is not new and certainly isn’t illegal. It does, however, bring with it a number of challenges and responsibilities. In today’s ever-changing world, what was seen as acceptable business practice five years ago may now be viewed in a completely different and sometimes unfavorable light.

How it works

The insurance broker is paid a commission for arranging insurance cover for a property owner. The insurance premium negotiated with the insurer reflects the fact that the broker is receiving commission. However, this situation gets complicated when the actual cost of the property insurance is inflated to include an additional commission payment which is usually paid to the owner.

This may be further complicated if the owner/landlord asks a Managing Agent to manage the property on his behalf. In this case the Managing Agent is instructed to arrange the insurance on behalf of the owner as part of their wider management of the property. This is when the insurance premium is inflated to an unreasonable level allowing the managing agent to receive a hefty cut of the commission.


» Property Insurance premiums are being unreasonably inflated by brokers and managing agents to gain ‘secret commission’.
» Property owners are largely unaware excessive charges are being passed on to them.
» Unreasonably inflated premiums can lead to a lack of fair competition within Property Insurance sector.
» M2 Recovery calls for best practice and more transparency within the Property Insurance sector to ensure fairer deals for commercial clients.
» M2 Recovery assists with investigating and recovering secret commission payments.