Aussie new insurance business falls after commission capped
If regulators want an indication of what might happen if they regulate insurance adviser commissions, they could look to Australia.
Over the Tasman, regulators have capped commission for life insurance policies at 80% of the first year’s premiums as of January 1 last year, dropping to 70% from this January and 60% from January 1, 2020.
Data by DEXX&R shows that preceded a major fall in the amount of business written.
In the 12 months to September 2018, the amount of individual lump sum – death,...MORE»
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Servicing adviser should get trailThursday, February 21st, 6:00AM
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Rough start to the year
We've had a reasonably rough start to the year with reporting and political tub-thumping. Between the Reserve Bank report, the Australian Royal Commission report, and the governments on both side of the Tasman, it's fair to say Financial Services has had a rough time.
MORE»Regulators 'may misunderstand' legacy products
Regulatory scrutiny of legacy insurance products may highlight a lack of understanding about how the industry works, one insurer says.
MORE»Asteron: Working closely with regulators
Suncorp’s life insurance business, including Asteron Life and its AA Life joint venture, saw its profits fall by almost a quarter between the first and second halves of last year.
MORE»Sum-insured remuneration model progressed
As regulatory attention goes on upfront commissions, two insurance industry commentators have released a discussion paper on how they propose the sector should be remunerated in future.
MORE»How you get paid
There are two sides of the coin when considering the possible effect of commission and incentives on advice when you run an advice business. This article is about how you get paid, the next will be about how you pay your advisers.
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