Brokers under fresh attack due to “huge conflict of interest” over commission
Report claims brokers receive up to 80% of their remuneration from insurers with Mactavish saying more businesses are “questioning the role their brokers play" as coronavirus crisis "brutally exposes" problems in the market.
Mactavish has called for a complete overhaul of how broker remuneration is communicated to clients after it published a report revealing that brokers receive as much as 80% of their remuneration from insurers.
According to the consultancy, this presents a “huge conflict of interest” as only 20% of broker revenue is composed of fees from their clients.
The report, Broker Conflicts, also showed that much of a broker’s revenue is directly linked to the price of premiums and Mactavish flagged that
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