The Government should regulate to end insurance commission abuses, Naomi Ballantyne, founder of Partners Life says.
The Financial Markets Authority (FMA) has released a report indicating a hardcore of about 200 advisers are earning big commissions by switching their clients from insurer to insurer.
Those commissions can be as high as 200 per cent of the first year’s premium the policyholder pays.
But rather than banning commissions, or capping them, Ballantyne has called on the Government to force insurance advisers recommending a client move from one insurer to another to write a report justifying the recommendation.
Read the full article here.