For many years Peverel/Firstport, via Kingsborough worked hand in glove with with Oval insurance Brokers to allow Kingsborough to charge excessive commissions and to negotiate large rebates provided the number of claims could be reduced.
They conspired together to work against the legitimate interests of leaseholders, with property managers encouraged not to pass claims on, or for Kingsborough to find as many reasons as possible to deny a claim without it even beiong put forward.
When challenged the leaseholder would be told by the property manager, "the claim was made verbally so their is no paper trail"
In April 2014 Oval Insurance Brokers whose income was dramatically falling after Kingsborough was becoming responsible for placing less insurance and of course penal commission rastes had to be reduced they were bought out by Arthur J Gallagher in as deal worth 199m pounds.
Though they seek to deny it, Arthur J Gallagher cannot simply distance themselves from the failings of Oval Insurance Brokers.
When they bought Oval Insurance Brokers, they inherited a whole host of issues, which they simply cannot ignore.
Now comes news that Arthur J Gallagher would not want to be in the public domain.
A section 166 review into the UK Governance & Framework Controls has been ordered by the Financial Conduct Authority. KPMG have been appointed to carry this out.
This may well be a conflict of interest given KPMG's role with Firstport.
The FCA is said to be concerned about the sudden expansion into the UK market and the number and speed of senior staff working at Arthur J Gallagher.
Anyone experiencing any problems with Arthur J Gallagher should make their concerns known to the FCA and KPMG.
UPDATE.
Arthur J Gallagher have made a satatement in which they "Welcome the investigation and will cooperate fully with it"
Disturbingly and adding credence to the investigation, they refer to a possibility of fines being imposed on them.
Given the nature of their business it may also be a concern that Arthur J Gallagher have guaranteed a mortgage loan taken out by a director in the sum of 5.8m pounds.
