About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, February 18th, 1:47PM
Latest Headlines

Sovereign boost commissions; nib offers a new model

nib moves to spread commission offer as Sovereign boosts its advisers' pay cheques.

Tuesday, November 7th 2017, 12:00PM

by Susan Edmunds

Health insurer nib has launched a spread commission option for advisers, which its chief executive says should help them grow stronger businesses.

The model offers 35% upfront and 25% servicing.

nib chief executive Rob Hennin said it was designed to encourage advisers to take a longer-term view of their business.

“What we are trying to do is encourage advisers to talk to their BDMs and have that cash flow discussion, the increasing capital value discussion, growth discussion. To talk about how they lower the risk and volatilty in their business and grow a business that has long-term value and security.”

He said health insurance was a long-term proposition. Spread commission would encourage persistency, he said. “In the long-term the adviser is better off. The money works itself out. The most important thing, we think, is as the income stream changes it helps advisers adjust their attitude to risk and investment and to take a long-term view, they behave differently.”

Advisers who did not have to worry about so much income volatility could focus on investing in their businesses, he said, building marketing and customer service and creating higher quality businesses.

nib has an agreement with Fidelity Life to allow its advisers to distribute Fidelity’s life insurance products. That insurer has also had a focus on spread commission arrangements.

Hennin said he was not sure what proportion of advisers would take up the spread commission option but expected it would become the norm in future.

“If you’re in this game for the long term you want to align your revenue stream with your customer servicing model – you end up with the spread model. At the end of the day we just want to make sure we’re offering the customer choice and the adviser choice.”

Meanwhile, Sovereign has also changed its commission structure.

It has revealed that as of November 1, advisers would receive a minimum underpin of 80% production bonus and 14.25% quality bonus.

On a rate-for-age policies, the minimum commission will be 200% upfront. Level policies will pay 161% minimum.

Sources said it could be an attempt to claim back some of the independent adviser market share that has gone to other insurance firms over recent years.

A spokeswoman said Sovereign would not comment on its commercial terms.

Tags: Commission Fidelity Life financial advisers health insurance investment nib risk Rob Hennin Sovereign

« Fidelity Life looks to accelerate growth with new capitalANZ keeping OnePath »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment



Printable version  


Email to a friend
Insurance Briefs

Southern Cross launches advisory group
Southern Cross Health Society has announced the establishment of a Māori governance advisory group in a first for New Zealand’s health insurance sector.

HealthLink and Konnect NET to merge
Healthcare technology companies HealthLink and Konnect NET are merging.

Fidelity scores top award for third consecutive year
Fidelity Life has been named 2019 Life Insurance Company of the Year by ANZIIF for the third consecutive year.

Suncorp invests in wellbeing
Suncorp New Zealand has now invested a total of $20 million into wellbeing bonds as part of its focus on identifying sustainable investment opportunities that can deliver positive community outcomes.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous 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