CommInsure has announced its support for the retention of adviser commissions on risk products.
In a statement released this week, the insurer indicated it opposes any ban of commissions on retail insurance products and supports flexible payment options for clients deciding how to pay for advice, considering commissions to be ‘… a sensible choice for many Australians’.
some clients … will not be comfortable with, or able to afford, a lump sum payment
Commenting on his company’s position, CommInsure’s General Manager Retail Advice, Tim Browne, said that while some clients might choose to pay a fee for advice, others will not be comfortable with, or able to afford, a lump sum payment.
According to Mr Browne, commissions are a valid alternative payment method that allow clients to obtain advice without paying additional fees from their personal savings.
CommInsure says it shares the now caretaker Government’s concern that affordability of insurance is a major issue and it believes that Australians most in need of advice are often those least able to afford it.
The insurer says banning risk commissions is likely to compound Australia’s underinsurance problem. It believes that many consumers will not seek advice if required to pay an upfront fee, leading in turn to more Australians having insufficient insurance in place at claim time.
Whatever happened to common sense like this ?
It’s like no one ever listened and looked what’s happened
Knowledge is great in hindsight they know it then but still forged ahead with the changes creating the mess we have today
Unbelievable!
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