tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, July 13th, 10:13PM

Insurance

rss
Latest Headlines

Advisers doing no-commission deals

Roughly 3% of risk advisers in New Zealand are operating on a no-commission basis, it has been claimed.

Thursday, July 23rd 2015, 6:00AM

by Susan Edmunds

In Australia, Findex Group has announced that all new life insurance policies recommended through its Centric Wealth and Financial Index Wealth Accountants divisions will be commission-free.

It has entered into an agreement with BT Group to deliver a commission-free product.

Chief of adviser services Michael Wilkins told media the policies will be distributed with an annual fee.

He said the move could reduce the cost of insurance by up to 30% for clients.

Russell Hutchinson, of QuoteMonster,  said his company's surveys had shown the number of New Zealand risk advisers operating on a no-commission basis was small, but they were in the market.

He said New Zealand advisers already had access to products such as the one Findex is launching. “I can’t think of a company that does not offer a no-commission product," he said.

At least one adviser a month would contact his company asking to be allowed to quote based on 0% commission. At present, QuoteMonster does not have this capability but Hutchinson said that was set to change.

“About 3% of risk advisers are purely fee-based at the moment. I’m not saying it happens a lot but any life adviser who has been in the market more than a couple of years will have done a 0% deal.”

Fidelity Life has dropped its zero-commission product that allowed advisers to add their fee and have the total charged as one amount to the client.

But all the major insurance firms offer the option of a zero-commission product billed to the client, allowing advisers to invoice for their fee separately.  Milton Jennings, of Fidelity, said that product was 30% cheaper for clients.

Australia’s Trowbridge Report recommended requiring all insurers to make a zero-commission product available.

Tags: Commission Russell Hutchinson

« [Opinion] Risk commission future not all gloom and doomFSC launches commission investigation »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

nib Foundation supports Lifeline to the tune of $150,000
To support the growing mental health needs of Kiwis emerging from the Covid-19 pandemic, Lifeline Aotearoa has increased its service capacity thanks to a $150,000 grant from nib foundation, the charitable arm of nib New Zealand (nib).

Southern Cross halves staff numbers
Southern Cross Travel Insurance is slashing its staff numbers from 90 to 45 people.

News Bites
Latest Comments
  • [The Wrap] Dealer group land like a game of Risk
    “Excellent. I've said for a long time that Dealer Groups were a necessary evil. Especially to the new entrant into the...”
    18 hours ago by BayBroker
  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    3 days ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    4 days ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    4 days ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    4 days ago by Matron
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com