In short, a secret commission refers to the kickback received, often by a managing agent, in exchange for arranging an insurance policy on behalf of a landlord.
This practice [secret commissions] has carried on unchecked for too long, but now it is time for it to end and for those who are responsible to be brought to justice. Our customers deserve better, which is why we are working with M2 Recovery.
Secret commission payments are a stain on the commercial real estate sector. M2 Recovery is leading the fight against these illegal payments.
More specifically, the terms of commercial leases often nominate managing agents to arrange insurance on behalf of occupiers. Under these circumstances, managing agents can charge insurers hefty commissions in exchange for brokering policies, which can inflate the premiums charged by insurers by more than 50%.
This costs policyholders tens of millions of pounds each year in the UK alone, but many are none the wiser.
Where such arrangements are not disclosed and approved by the occupier in advance (not to mention the impact of such arrangements on the premiums the occupier becomes obligated to pay), this constitutes a secret commission. And these arrangements are often illegal, which is where we come in.
How do we help?
With over 40 years’ experience in the real estate insurance sector, we’re truly experts at challenging managing agents and landlords on behalf of high-profile occupier clients (including the likes of Tesco and NCP) to recover millions of pounds of secret commission. Both retrospectively and in respect of future premiums.
In fact, we recovered more than £2 million last year alone from brokers and managing agents.
We work on a no win no fee basis with large corporates and high-net-worth individuals that have single occupation of large buildings and property developments, paying premiums in excess of £100,000 per year (or £600,000 across a six-year period).
If you meet our criteria, the first step is to get in touch with us and share any potentially relevant documents and evidence.
We’ll then instigate an investigation (at no cost to you) and confirm whether we’re able to take on your case.
If so, we’ll commence the recovery process – dealing with all the legals in-house – with a view to reaching a settlement that properly compensates you for both past and future secret commissions. We’ll then retain 40% or £100,000 plus VAT (whichever is higher), and you’ll keep the rest.