What is the obligation of an intermediary regarding commission disclosure to a commercial customer?

An intermediary has a clear obligation to disclose commission information to a commercial customer upon request. This practice is rooted in the principles of transparency and trust in the insurance industry. By allowing customers to inquire about commissions, intermediaries can provide clarity regarding potential conflicts of interest and ensure that customers are aware of the financial incentives at play in the transaction. This disclosure is essential in fostering a strong, trustworthy relationship between the intermediary and the commercial customer, ensuring that the customer makes informed decisions based on the full context of the financial arrangements involved.

The obligation to disclose at the customer's request highlights a more customer-centric approach, allowing for flexibility and customer empowerment, as opposed to mandating disclosure in an Initial Disclosure Document or at the end of the contract, which may not always be effective in addressing a customer's immediate concerns or inquiries about commissions. Additionally, stating that no obligation exists contradicts the regulatory frameworks that promote transparency and accountability in insurance dealings.