Health insurer Groupama is giving brokers the ability to select the level of commission they earn on all SME business placed with the company.
The provider will offer a variable commission option across the whole of its commercial product range - whether transacted traditionally or online via its Optima Online trading platform.
The move will enable brokers to provide a more tailored service to SME customers and will present an opportunity for them to dispense with service charges where it fits better with their trading model.
Each commercial product will carry a default commission level but where required, brokers can choose an alternative amount of commission from a specified range subject to premium adjustment.
Premiums net of commission will remain constant with adjustment to gross premium to reflect the lower or higher commission rate.
Malcolm Smith, commercial lines director at Groupama Insurance, said: "The current remuneration structure for commercial insurance is extremely complex.
"In response to broker feedback for a simpler and more flexible reward structure we are launching a variable commission option as a standard part of our commercial product range.
"We think that individual brokers are in the best position to assess the cost of handling a particular policy and, where necessary, to justify their remuneration to the client.
"Offering a variable commission option gives brokers greater control over the way they conduct their business and can help them to operate profitably in accordance with FSA requirements."
