How it works is a bit complicated, but generally, the insurance broker pays a commission to the strata manager. I believe this is capped at 20%, if that is wrong someone feel free to correct me. Apparently this commission is funded out of the fee that would be payable to the insurance broker, so in that sense the OC is not paying the commission (although obviously it is built into the price of the premium). Within the ambit of fees that the OC is paying the strata manager, this wouldn’t need to be disclosed in the accounts.
If a strata manager is to receive a commission this must be disclosed in the strata management agreement.
This is assuming you are using an insurance broker, this applies in most cases, apparently they get better deals. An OC can arrange insurance directly but this doesn’t mean it will get a discount reflecting non-payment of a commission.
Strata managers argue that if they didn’t receive this commission then their strata management fees would be higher, and that is likely, generally strata management fees are not that substantial by themselves.
I am not an apologist for either strata managers or insurance companies, but personally the commission doesn’t really bother me.
It is reasonable for you to ask how much the commission is, i.e. the percentage, at least so you know that it is under the cap.
You seem to have a much broader problem, in that your strata manager has far too much control of the OC generally. From what you have said, the OC has delegated office bearer responsibility to the strata manager, is that right? At the AGM did you volunteer to be on the EC and be secretary or Chair?
The AGM minutes should note who was elected to be Chair, Secretary and Treasurer and owners have a right to know who these people are.