AXA removing policy fee commission
AXA is removing the initial and renewal commission paid on risk protection policy fees to balance out the increase it is making to premiums in response to life insurance tax increases.
Friday, June 4th 2010, 11:07AM
by Jenha White
AXA general manager of marketing and financial protection Mark Ennis says this approach has been taken because AXA believes it is most equitable to share the impact of tax increases between customers, advisers and itself.
AXA stepped term new business will see an average increase of 7.8% and level term new business will have an average premium increase of 15.4% for ages 25 to 70 from July 1.
There will be no changes to existing business.
The initial and renewal commission currently paid on the policy fee to advisers will be removed on all new Risk Protection business written from 20 September.
Ennis says commissions on policy fees have been removed because commissions are a function of premium value and as premiums are going up, commissions work out to be a similar dollar number.
"One offsets the other," he says.
AXA has delayed the removal of commission on policy fees to September because it wants advisers to have plenty of time to know what is happening.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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