Partners Life has announced it will be removing new business volume targets from bonus commission payments, effective 1 October 2019.
In an update to advisers, Partners Life stated it is “committed to removing incentive criteria that is based on production levels to ensure we can deliver good insurance outcomes for New Zealanders”.
It noted its first step in delivering on this commitment was ceasing its offshore adviser conferences, which it announced in October last year (see: Partners Life Ends Offshore Conferences…).
It is now changing the current bonus commission criteria included in the Partners Life Commission Schedule, which forms part of the Partners Life Adviser Business Agreement.
The insurer said it will be removing the current volume criteria for bonus commission and underpinning current bonus levels for a period of six months.
It also confirmed it is currently working on alternative quality-based criteria to replace the current criteria for bonus commission.
“We intend to seek feedback from the industry to ensure we design a model focused on measurements that will recognise good customer outcomes from an effective date of 1 April 2010,” Partners Life stated.
“For the majority of advisers who provide excellent advice and ongoing service to their clients, this change in bonus commission criteria should mean their current bonus commission rates are likely to remain unchanged, but market and regulator criticism of volume-based incentives will no longer be applicable to Partners Life advisers.”