Fidelity Life to stop upfront commission on inflation increases

Adrian Riminton

In a note to advisers, acting chief executive Adrian Riminton said the insurer had been conducting a review of the business, including the adviser proposition and commissions.

"We've concluded that paying initial commission on CPI increases is out of step with changing expectations around good customers outcomes and we're the only insurer that pays it."

The change would take effect in six months' time.

If a clients' premiums were $1,000 and increased to $1,030 because of inflation, most insurers would pay renewal commission on the total new amount.