ING Life announces premium increase
ING Life has announced its response to the July 1 tax changes, staggering its new business and in-force premium rate increases by 3% per annum for the next five years till 2014 and reducing adviser commission bonuses.
Thursday, September 23rd 2010, 5:49PM
by Jenha White
ING Life managing director Jeremy Nicoll says ING thought a modest increase rather than a sudden big increase was more palatable for policy holders.
He says ING has created an equitable response to the life insurance tax changes across all parties with customers taking an increase, advisers facing a reduction in bonus commission and with ING bearing the costs of the transition, especially with the staggering of premium increases.
Nicoll says initial commission rates for insurance advisers will be held at 150% but the commission bonus rate will be reduced by 20%.
He says for example a typical group would have had 200% commission for its advisers, 150% initial commission and 50% bonus, however going forward with the changes, bonus commission would only be 30%.
Most companies made their premium increases before July 1 but ING is waiting till October 1 to coincide its changes with the GST rate increase to 15%.
The reduction in bonus commission however will be phased in over the next month till the end of October.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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