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The problem with removing insurance commissions (or restricting them to $1200 upfront) is that no one will give insurance advice unless it’s packaged with full advice thereby restricting insurance advice to the high net worth clients who can afford to pay $5k minimum pa advice fees.

Independent insurance advisers will largely be forced to work directly for the insurers and will be paid wages and bonuses (instead of commissions but basically the same). Clients will get no choice of insurance provider and more importantly no help at claim time from their adviser. Clients will find it hard to change insurance policies to different companies as they either have to do the leg work themselves, go direct, or pay an adviser $5k to do it for them, which they will not do.

The only reason insurance advisers exist is because we are paid quite well. It’s not a glamorous job. No one at school ever said “when I grow up I want to be an insurance adviser”.

No commissions for insurance will be a horrible outcome for customers. The only ones who benefit from no commissions are the blood sucking lawyers who will take a commission from the insurance policy of around 30% of the claim payments