All new life insurance policies put forward to Findex clients via Centric Wealth and Financial Index Wealth Accountants are to be commission-free, with the very first product offering developed by BT Group.
The move comes after great industry upheaval and debate regarding the viability of ongoing commissions, but according to a Risk Adviser article published on the Findex website, the idea has been under development for some time, and was not a direct result of the Trowbridge recommendations. The commission-free insurance suite will be expanded over the coming months.
The cost of life insurance will drop by up to 30 per cent on the product, which goes some way toward levelling the playing field after industry warned that ditching commissions completely would result in fewer consumers taking out insurance cover because the cost would be prohibitive. While this may still be suspected as being the case, an overall reduced cost, modest as it may be for the majority, is a valuable start to commission-free insurance products becoming the affordable norm in Australia, directly led by insurance companies and advisers.