Can you spot the single-issue fanatics?
On one side of the debate are some fee-only purists. Some defenders of commission see any criticism of it as treason, and any fee as the thin end of the wedge.
Is a well-regulated and efficient insurance market compatible with the payment of commission?
If you consider the UK to be a well-regulated market, then plainly ‘yes’. Commission is paid at rates comparable to those in New Zealand, although soft commissions of the kind recently seen are rarer, it is far from the current levels in Australia, or those that are advocated for.
Another reminder that conduct is about more than just one thing – more than commission, more than replacement, more than disclosure, more than record-keeping. That’s why a whole new regime, law, regulation, code, licence conditions, and conduct are all required. Use commission as a sole yardstick and lots of direct and vertically integrated insurance is left out of the picture.
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