Insurance Commission

We are a block of 65 units in NSW and the insurance is around $35Kpa. A question was asked at our last AGM about who receives the trailing commission and was advised the Strata Manager does. When questioned why this was not passed onto OC the answer from the SM was if it was passed onto OC, Strata Management Fees would have to increase by a similar amount and that Insurance Companies do not pay commissions to Owners Corporations and if it did not go to SM it was retained by Insurance Company.  Is this correct?  Members of the SC were questioned if this was correct and responded that they trusted the advice given by the SM was correct.