PruHealth has announced a range of new commission structures on its individual PMI business.
There are a number of options to choose from to meet different IFA and specialist adviser circumstances, which are all effective from 1st November 2012.
1. Tiered bonus commission: to reward those that have higher sales, a higher commission structure has been introduced for those with API above £10,000 in any month.
The current standard initial commission rate of 45% will remain the same. However for all API above £10,000 sold and activated in any month an additional bonus commission of 15% will be paid, with 5% renewal commission.
2. 24 month clawback option: for those IFAs whose primary product focus is protection and other financial services products, as an addition to PruHealth's standard commission rates which operate on a 12 month claw-back basis, the benefit of commission over a longer claw-back period is also available as an alternative.
The new 24 month claw-back option offers a much higher initial commission rate of 90%. No renewal commission will be paid under this option but advisers will retain ownership of the customer.
3. Lead referral option: for those advisers who want to capitalise on the opportunity to promote PMI to their client base but do not wish to develop their own PMI advice model, a lead referral option is available.
This is a simple way of enabling IFAs to broaden their product penetration with their client portfolio while leveraging PruHealth's highly differentiated product. This model will pay 45% initial commission for lead referrals (with no trail commission) on a 24 month clawback basis.
4. Single tie: for advisers who wish to partner with PruHealth to promote its award winning products, a single-tie arrangement is available. Brokers will benefit from enhanced commission rates, in addition to specialist technical support in setting up their PMI advice process.
David Priestley, sales director at PruHealth, said: "We have designed these changes to help brokers recover the costs of their initial investment and offer alternative options for generating income.
"With the advent of RDR along with other market dynamics, a fantastic opportunity exists for brokers and other non specialist advisers to consider PMI as a growth opportunity and we are looking at ways of making it as easy and attractive as possible.
"This forms part of PruHealth's strategy to invest in supporting IFAs to enter this market and grow their income and our investment in creating highly differentiated products which offer a much broader appeal than traditional PMI."
