Not upheld: Other regulated complaint complaint against BROWN & BROWN INSURANCE BROKERS (UK) LIMITED

Decision detail

Summary

A limited company (1), which is the freeholder of a multi-occupancy building, complained that Brown & Brown Insurance Brokers incorrectly classified its insurance policy as commercial and failed to disclose a 30% commission arrangement until after the policy was in place. The complaint covered policy renewals in 2024 and 2025. Brown argued that as a limited company, 1 was a commercial customer and that commission disclosure was only required upon request, with its terms of business making this clear. The ombudsman found no error, determining that Brown reasonably explained the commercial classification, that proactive commission disclosure was not required, and that the terms of business adequately informed 1 of its right to request commission details.

The Ombudsman's reasoning

The ombudsman determined that Brown took reasonable steps to explain why a commercial policy was suitable for a limited company freeholder. Regarding commission disclosure, the ombudsman found that commercial insurance brokers are only required to disclose commission upon request, not proactively before policy inception. The terms of business sent with policy information clearly set out the remuneration structure and confirmed 1 could request full details. The ombudsman noted that Mr K provided no supporting evidence that alternative arrangements were available, and the fact that Mr K returned to Brown after the 2025 lapse undermined the claim that knowledge of commission would have led to alternative arrangements.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website