Castle Insurance has introduced a net commission option for home and contents policies, giving brokers a choice in how they structure remuneration as they respond to the Australian Securities and Investments Commission's (ASIC) informed consent requirements for insurance commissions.
The national home and contents insurer announced on April 30, 2026, that brokers can now place Castle-branded policies on either a full-commission or net-commission basis via EBIX Sunrise Exchange, Unmand, and InsureBot. On these platforms, intermediaries can quote and bind Castle policies on:
The new option applies only to Castle Insurance home and contents products. It does not extend to the Sure Insurance-branded portfolio, which continues under its existing commission settings. Bradley Heath, managing director of Sure Insurance, said the change reflects an ongoing focus on broker input. “Being agile and open to feedback is a key part of the Castle value proposition and is delivered by our team every day in everything from fast referral responses to product and underwriting queries. This is another example of our commitment to deliver for brokers and policy holders,” Heath said.
Castle’s move comes as brokers continue to work within ASIC's informed consent rules for insurance commissions, which took effect on July 10, 2025. Under the conflicted remuneration provisions of the Corporations Act, Australian financial services licensees and authorised representatives who receive monetary benefits such as commissions on certain general insurance, life risk insurance, and consumer credit insurance must obtain a client’s informed consent before the benefit is paid in a personal advice setting. If informed consent is not obtained, the monetary benefit may be treated as conflicted remuneration, with potential consequences including civil penalties, banning orders, or suspension or cancellation of an AFS licence.
To secure informed consent, advisers and brokers must disclose specific information to clients, including:
ASIC guidance indicates that this information should be presented in a clear, concise, and effective manner and that the commission rate should be at least as prominent as the surrounding text in the disclosure.
Pat Campbell, national broker development manager, said more brokers have been asking for net commission options in the period since the informed consent obligations commenced. “The requests for net commissions on household insurance have increased with the introduction of the ASIC Informed Consent Legislation which took effect from 10 July 2025, and brokers are seeking options as to how they manage commissions and fees for their clients while remaining open and transparent,” Campbell said.
By offering both gross and net commission settings at the point of sale, Castle is providing an additional structure for brokers reviewing how commissions and fees are disclosed and documented. For some intermediaries, a net commission option may be used to separate the insurance premium from advice, service, or broking fees, which must also be clearly explained and recorded. “Combined with our agile service and competitive pricing methodology, this commission option will allow more brokers to offer much-needed insurance alternatives for their clients,” Campbell said.
The informed consent framework also has implications at renewal. Where the rate and frequency of commissions at renewal are the same as, or lower than, those previously disclosed, and the original consent expressly covered renewals, new consent is not generally required. However, if the renewal commission rate is higher than initially disclosed, or if the frequency of commission payments changes, brokers need to obtain new or varied consent from the client.
For insurance intermediaries, the ability to elect between full and net commissions on Castle Insurance policies adds another configuration point when setting remuneration approaches under the informed consent rules. Brokers may use the option alongside other measures, such as adjustments to fee structures and disclosure documents, as they review advice processes and documentation for retail clients. Castle Insurance said it would continue to monitor broker use of the new setting and broader regulatory developments when considering any future changes to its commission and distribution arrangements.
