August 5, 2015
Around half of those advisers who are subsidising insurance advice commissions with fees are not rebating or reducing the fee when they receive a commission, new research has found.
Elixir Consulting has released a new edition of its Adviser Pricing Models Research, with a focus on pricing insurance.The research reveals how 275 advice businesses around the country charge for their services.
“With the new insurance frameworks affecting how advisers are remunerated for their risk advice, there has been a significant increase in interest from advisers wanting to know how others charge for their insurance advice. The research is really helpful in getting a feel for what’s possible – for what prices and structures are working in this very complex area of advice,” said Managing Director Sue Viskovic.
We found quite a spread of those who received each of the three types of commission…
“We identified how participants charged for both insurance advice included in comprehensive, as well as for insurance-only advice. We found quite a spread of those who received each of the three types of commission (upfront, hybrid and level) as well as charging fees. Of those who subsidised commissions with fees, roughly half reduced or rebated the fee when they received commission, and half did not.”
The full report, as well as a summarised adviser insights version, was released earlier this year, and Elixir has now released an adviser Insights version – Insurance Edition. The research contains information on the pricing models used as well as the quantum of the minimum fees charged in businesses, plus how they charged for five different case studies.
The research can be accessed via the Elixir website.