Advisers replacing policies are doing their jobs
The Melville Jessup Weaver Review of Life Insurance Advice report, released this morning, says independent advisers are being encouraged through high upfront commissions to sell clients more cover than they need and replace their policies more frequently than they should.
Report author David Chamberlain said commissions had reached their currently levels of up to 200% upfront as insurers competed aggressively for adviser affections.
But he said now they were stuck because no insurer could move first to cut commission and risk losing adviser support as a result. Insurers had given advisers the impression that replacing business was appropriate.
He said replacement policies made up about 50% of advisers’ sales while bank insurers were only operating at a rate of about 10% replacement business.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] Research shows KiwiSaver is a key issue in the election; GRTV Special looks at what's on offer.](https://goodreturns.publit.io/file/c_fill,w_300,h_200/36b7de93-7b53-4a06-855a-4a8f4009a280.webp)
