Direct insurance sales agents for ClearView could earn commissions of up to $8,000 if they exceeded 250 per cent of their targets, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has been told.
ClearView chief actuary and risk officer, Gregory Martin confirmed the existence of the commission under questioning from counsel assisting the Royal Commission, Rowena Orr QC, along with the fact that sales agents could between rewarded with commissions of between $600 and $850 a fortnight if they met 100 per cent of their scales target.
Martin also confirmed that the $8,000 commission had been reduced to $5,000 and conceded that this might have been the commission may have been driving poor behaviour on the part of sales agents.
He said that he believed the reduced $5,000 commission amount was aimed at pulling back “some of the excess in sales”.
Orr suggested that Martin that the commission structure had had the effect of “incentivising sales agents to make sales at almost any cost”.
