Aussie new insurance business falls after commission capped

Rob Everett, FMA chief executive

Over the Tasman, regulators have capped commission for life insurance policies at 80% of the first year’s premiums as of January 1 last year, dropping to 70% from this January and 60% from January 1, 2020.

Data by DEXX&R shows that preceded a major fall in the amount of business written.

In the 12 months to September 2018, the amount of individual lump sum – death, TPD and trauma – was at its lowest level in five years.

There was A$1.2billion of lump sum new business written in the year to September, down 14.5% on the year before.