AXA ups commissions by 33%
To remain competitive in the broker market AXA is upping its commission rates by a third
Monday, July 16th 2001, 6:21AM
Axa New Zealand has raised some commissions by a 33% and is offering loyalty bonuses as it seeks to win the allegiance of financial advisers.
The new business commissions on life and other risk products brings them into line with market rates.
From October a range of new benefits will also be offered to aligned Axa advisers, including a loyalty bonus, in return for them meeting loyalty commitments and minimum business levels.
As part of the change, advisers face new eligibility criteria to be recognised as aligned Axa advisers.
Renewal commissions have also been standardised.
Axa sales general manager Greg Campbell says the new remuneration terms reward advisers for using Axa products and recognised both new and retained business.
Feedback from advisers had been positive, he says.
Axa advisers group president Bob Edwards, welcomed the increases, saying the company had listened to advisers’ requests to bring commission rates up to market rates.
Axa spokesman Ryan Day says the new commission structure affected only risk products, not superannuation of investment offerings.
To qualify as aligned Axa distributors and earn the loyalty bonuses advisers had to reach certain sales targets and training standards, Day says.
"Our changes have made us extremely competitive," he says. However, Axa was not going to pay an "unwise" amount of commission.
Day says the company has no plans to raise its premiums to cover increased premiums.
The company’s next profitability review, due in 2002, would cover issues including premiums, mortality and claims rates, he said.
Some premiums might increase, other might decrease.
"I can’t say we will not increase premium rates. Whether that would be to do with commissions is a different point."
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