The Findex Group has announced that all new life insurance policies recommended through its Centric Wealth and Financial Index Wealth Accountants divisions will be commission-free.
The move, which the company says is based on its embrace on its rejection of high up-front commissions, has entered into an arrangement with BT Group to deliver what it is describing as its first commission-free Findex life insurance product.
Findex Group chief of adviser services, Michael Wilkins said the group had plans to extend the range of providers in coming months once negotiations were complete with other life insurance companies.
He said the history of the industry and its legacy systems, combined with the dominant culture of high up front commissions in the advisory industry had acted as impediments to change.
“This new life insurance product will offer lower life insurance costs to our clients ranging from moderate savings to as much as 30 per cent, with the actual quantum depending on individual client circumstances,” he said.
“These commission-free policies will involve a net premium expense and an annual transparent, administrative service fee.”
Wilkins said the company had been looking for suitable partnerships with responsible life insurers for several years, well ahead of the Trowbridge review of the life industry, “because we were concerned about the futility of high commission products in that they simply encourage churn”.
“We welcomed the Trowbridge Report but have always believed in aiming higher by seeking 100 per cent commission-free model. We are delighted that product developers such as BT have been able to create a product that is consistent with our philosophy,” he said.
Wilkins said the Findex commission-free life product would be rolled out to all the group’s divisions later this year once appropriate systems are in place.
