A new commission structure for insurance advisers has been proposed, which would see a shift from upfront commission paid as a percentage of the policy holder’s annual premium to a percentage of the total sum assured (see: New Adviser Commission…).
The new concept aims to provide less cause for potential perceived and real conflicts of interest, both at the adviser and insurer level.
“…there has been little to nothing said of the complexity or improvement that can be made to structures that are decades old…”
Bruce Cortesi, who has worked with Darrin Franks to develop this concept, said it lines up with other existing commission models like that for mortgage brokers, who receive commission from lenders as a percentage of the amount loaned.
Do you agree with the proposed model for adviser remuneration? Or do you think that this model is a move in the wrong direction?
Tell us your thoughts and we’ll report back next week…