{"id":12293,"date":"2011-09-14T00:19:34","date_gmt":"2011-09-13T14:19:34","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=12293"},"modified":"2021-04-15T10:18:50","modified_gmt":"2021-04-15T00:18:50","slug":"churning-solutions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/09\/14\/churning-solutions\/","title":{"rendered":"Churning Solutions"},"content":{"rendered":"<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/churning-solutions\" target=\"_self\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1228               aligncenter\" style=\"border: 0px\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2009\/05\/vote-now.jpg\" alt=\"Vote Now!\" width=\"108\" height=\"47\" \/><\/a><\/p>\n<p>The debate on churning continues to\u00a0evolve,\u00a0but opinions are divided about the solution.<\/p>\n<p>We are asking advisers to tell us what they think:<\/p>\n<p><!--more--><\/p>\n<p><strong><em>In addressing the issue of churning, which of the following initiatives would you support?<\/em><\/strong><\/p>\n<p>Based on previous comments to riskinfo from advisers, licensees and life company management, some of the\u00a0solutions put forward include:<\/p>\n<ul>\n<li>Ban all commissions<\/li>\n<li>Ban all upfront\/hybrid commissions but\u00a0allow level commissions<\/li>\n<li>Ban upfront commissions on replacement policies only<\/li>\n<li>Offer &#8216;quality&#8217;\u00a0incentives to advisers for maintaining low lapse ratios<\/li>\n<li>Offer more attractive remuneration to advisers for upgrading existing policies<\/li>\n<li>Create\u00a0an industry-wide black list for &#8216;serial&#8217; churners<\/li>\n<\/ul>\n<p>In addition to this list, the Financial Services Council has announced its intention to:<\/p>\n<ul>\n<li>Remove takeover terms for all\u00a0re-issued policies<\/li>\n<li>Institute a consistent adviser responsibility across all insurers<\/li>\n<\/ul>\n<p>These suggested solutions all have their pros and cons.\u00a0 For example, banning all commissions or allowing only level commissions would mean an end to churning, but at what price?\u00a0 What impact would this ultimately have on consumers and the already imbalanced underinsurance equation?\u00a0 While each initiative would address the issue in one way, shape or form, we want to know\u00a0about those initiatives you would\u00a0actually support.<\/p>\n<p>The vast majority of\u00a0policies that are cancelled and re-issued are indeed\u00a0in the best interests of the client. We are only asking this question in relation to those re-issued policies that are not in the client&#8217;s best interests,\u00a0and will report the results to you next week&#8230;<\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/churning-solutions\" target=\"_self\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1228               aligncenter\" style=\"border: 0px\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2009\/05\/vote-now.jpg\" alt=\"Vote Now!\" width=\"108\" height=\"47\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The debate on churning continues to\u00a0evolve,\u00a0but opinions are divided about the solution. We are asking advisers to tell us what they think:<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-12293","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/12293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=12293"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/12293\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=12293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=12293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=12293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}