CommInsure backs commissions as option
CommInsure has moved onto the front foot on a number of key policy issues including writing to advisers to reinforce its support for commission-based remuneration in insurance.
The move has been led by CommInsure's general manager of retail advice, Tim Browne, who this week wrote to advisers stating that CommInsure opposed any ban on commissions for retail insurance products.
While other insurance industry executives have expressed their view that commissions should remain with respect to insurance, Browne is the first person to have specifically publicly positioned his company in the minds of advisers and, ultimately, the Government.
His message to advisers said that CommInsure supported flexible payment options for clients deciding how to pay for advice and considered commissions “a sensible choice for many Australians”.
“Whilst some clients might choose to pay a fee for advice, others will not be comfortable with, or able to afford, a lump sum payment,” he said. “Commissions are an alternative payment method that allow clients to obtain advice without paying additional fees from their personal savings.”
Browne said that CommInsure shared the Government’s concern that affordability of insurance was a major issue and believed that Australians most in need of advice were often those least able to afford it.
“A ban on commissions as proposed is likely to compound Australia’s underinsurance problem,” he said. “We believe that many clients will not seek advice if forced to pay an upfront fee, and consequently, individuals may have insufficient insurance in place at claim time.”
AUTHOR
Mike Taylor
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
