Kevin Paterson, Sales & Marketing Director, explains:
“As far as we’re concerned, renewal commission is not paid as goodwill. I understand that some general insurance providers state that they have no contractual obligation to pay where a network ceases its arrangement with them. Well, that’s not the case at Assurant Intermediary. We have written our commitment to renewal commissions into our contract and will stand by our obligations.”
Paterson also confirmed that Assurant Intermediary has an equally committed approach when it comes to paying commissions into retirement:
“There is no foundation in regulation for not paying commissions into retirement. If the broker remains liable for the advice given into retirement, then they should be able to continue to receive the ongoing renewal commission.”
Under the terms of its contract, Assurant Intermediary will continue to pay trail commissions into retirement as long as the intermediary remains registered with the Financial Services Authority. Should the intermediary choose to deregister then Assurant Intermediary will either offer to buy the book of business or allow the intermediary to transfer the book in-house and move to an introducer status – so ensuring they continue to receive renewal commissions.
Paterson concludes:
“It’s not easy for brokers and intermediaries in the current trading environment, so we want to make it as easy possible for them to do business with us. We have built a reputation for providing our partners with excellent service and some of the best products available on the market as well as valuable management information to help them manage their business pipeline.
“By enshrining our commitment to commissions as part of our contract, we are demonstrating that we are committed to a mutually beneficial long-term relationship.”
Assurant Intermediary is a specialist in the mortgage broker and intermediary market, delivering a range of general insurance products that support them in their day-to-day business and provide their customers with value for money protection.
