ABI explores commission alternatives.(Association of British Insurers appoints Deloitte and Touche L.L.P. )(Brief Article)

Financial Adviser, September, 2005

THE ASSOCIATION of British Insurers is attempting to find a workable alternative to indem-nity commission.

The ABI appointed Deloitte to talk to providers and advisers about a possible alternative to indemnity commission, which is an upfront payment made to intermediaries on the understanding that if a policy is cancelled within a certain period of time, part of this cash will be repaid to the insurer.

Deloitte will report back on alternatives identified by the industry and list the transitional issues that would arise if a shift away from indemnity commission to a different method of payment is advocated.

Recommendations about a possible alternative to indemnity commission will be outlined in a report on adviser remuneration, which is due...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.