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Insurance Business | 16 Sep 2017, 03:44 PM Agree 0
“Consumers will walk if they sense they are being taken for a ride”
  • Terry | 18 Sep 2017, 12:10 PM Agree 1
    The strong argument in favour of a fee based remuneration model is that brokers can describe their services as being 'independent', 'impartial' and 'unbiased' something that Section 923A of the Corporations Act currently prohibits for those receiving commissions.

    That alone is a powerful argument to switch away from commissions in favour of fees .

  • Robert Cooper | 18 Sep 2017, 12:33 PM Agree 0
    Charging a Professional Fee makes sense for large Corporate Business, but not for small to medium business. Brokers of these policy covers have taken away the need for insurers to have a front line advice and service area within their own businesses. With Brokers dealing with underwriters, speaking their language, putting it in an easier form than would an ordinary member of the public, it makes sense that Insurers pay us Brokers as a result.We are saving them time and additional costs.
    Besides how easy is it for a client to turn up with their portfolio to a different Broker, show them what they get charged as a fee, have the new Broker agree to take 30% off and then pick up the account by a letter of appointment? Yet all the renewal work has been done by the previous Broker. By suggesting we move to a full fee based approach, this is what is likely to happen! "Yes I can do it cheaper", service levels drop because you do not earn enough from the account to warrant it. This all at the very time other experts are telling us to be more than just an Insurance buyer for our clients and offer them Risk advice as a trusted consultant.
    Let us hope we stay with the current system for as long as possible because it will not suit Brokers who service small to medium business clients.
  • Goosy goosy gander | 18 Sep 2017, 12:34 PM Agree 0
    Do you think that travel agents will disclose the 51% commission they receive?
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