RBS Case Study

We were instructed on behalf of RBS to undertake an insurance audit on a portfolio of properties which had fallen into default. The Borrower had insured through their preferred Broker with RBS noted as Co-Insured. During the period the properties were in default the Broker had maintained insurance cover and RBS had paid the premiums.

It was established during the course of the audit that the Broker had entered into a commission sharing arrangement with the Borrower (now in default). The Broker maintained this arrangement with the Borrower while the premiums were being paid by RBS. The Broker had a duty of care to RBS to advise them of this arrangement. Failure to do so created a secret profit and ultimately the Broker was required to refund to RBS the commission paid to the Borrower.

Secret Commission Explained
  1. A third party arranges insurance cover for your property
  2. The third party takes a share of the Insurance commission without disclosing this to you, creating a secret profit
  3. With our help you can recover this secret commission
M2 Recovery Process
  1. The first step in our recovery process is to analyse the premium being charged and determine if the rates could have been inflated to cover the cost of secret commissions.
  2. The second step in our recovery process is to investigate the transparency of the third party commission and make a formal request for the commissions to be disclosed.
  3. The final step in our recovery process involves calculating the secret profit to be recovered in order to proceed with the financial recovery from the third parties and obtain a payment for our client.