About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 18th, 7:23AM
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

Asteron and Fidelity go head to head for award

nib enters ASX 100
nib health funds has been added to the ASX 100 index as part of the September 2019 quarterly rebalance of the S&P/ASX Indices.

AIA's shot at a TV ad
AIA New Zealand joins forces with Dame Valerie Adams to help Kiwis live healthier, longer, better lives.

Southern Cross recognised
Southern Cross Health Society has been recognised as one of Australasia’s top 10 ‘Most Innovative Companies’ for BeingWell, its corporate health and wellness programme.

News Bites
Latest Comments
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