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: Saturday, May 8th, 7:06PM

Insurance

rss
Latest Headlines

Partners Life axes volume-based incentives

Partners Life is removing its volume-based bonuses for advisers and will replace them with rewards for good conduct.

Thursday, September 5th 2019, 12:39PM

From October 1, the insurer will no longer offer a volume criteria for bonus commission.

Current bonus levels will be underpinned for six months.

Partners Life is working on an alternative set of criteria for bonus commissions, which may include factors such as persistency and policy activity. That is yet to be finalised.

Managing director Naomi Ballanytne said the insurer had offered a volume-based commission since it launched but it was clear that the regulator did not view as appropriate any sales incentives that were tied to volumes sold.

“It’s clearly not in keeping with what the regulator wants.”

AIA and Asteron Life have made similar changes.

Ballantyne said while other insurers had locked in volume commissions as a total commission rate, Partners Life had decided that was not the best thing to do because it removed its ability to incentivise other behaviours.

“We felt it was important that people who do good get more.”

In a statement, Partners said: "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."

Ballantyne said the change would not affect what was paid to dealer groups, which are, at present, one step removed from the advice process.

But the move to licensing would bring significant change for them, she said, and could necessitate a conversation about how they were paid.

She said if there was a push to lower total upfront commission that could leave the groups needing to find another way.

Ballantyne said it was not yet clear what the future would look like for dealer groups. “A lot are trying to figure it out themselves.”

Tags: AIA Asteron Commission Naomi Ballantyne Partners Life

« IFSO backs adviser in misselling claimKiwis face 'trade-off' buying insurance »

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

Tower builds partnerships with CSC and Sentro
Tower Insurance has continued its partnership push announcing it has formed new relationships with CSC Buying Group and InsurTech start-up Sentro.

nib Little Legends $10k Relay gives junior players a healthy funding boost
The nib Little Legends $10k relay, held during half-time at the Blues vs Chiefs match on Saturday, was won by the Pakuranga United Rugby Club.

nib helps protect future rugby stars
nib New Zealand has partnered with the Auckland Blues Super Rugby Aotearoa team to launch its nib Little Legends Little Smiles initiative, giving 1000 junior rugby players OPRO custom-fitted mouthguards – the same ones worn by the professionals.

Insurance professionals get time to shine
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has launched an initiative aimed at showcasing the success of insurance professionals.

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
x