A spokesperson for Findex Group has confirmed to Risk Adviser that the non-aligned group will transition away from its current hybrid commission model to a fee-for-service model from 1 July 2015.
“Findex and Centric Wealth – one of its companies – will move to a fee for service model for insurance and over the next few months Crowe Horwath will also convert to a fee for service model,” they said. “They will get rid of commissions completely.”
In an upcoming article for Risk Adviser, Findex Group chief executive Spiro Paule lays out his vision for the life insurance industry.
Stop it Paul – you are making too much sense!
How can anyone disagree with the fact that FEE FOR SERVICE DOES NOT WORK FOR RISK INSURANCE.
Once again it’s people who are not risk writers making all the noise!
Yes agreed, there will be less and less people with insurance and the insurance companies will introduce Roboinsurance….a quick online process and they will underwrite it at the time of claim everyone will have worthless insurance
This would be breaking news if they had any big risk writers left – but, well, they’ve all recently left…
I look forward to reading Spiro Paule’s vision for the life insurance industry. I also have a vision of the future and it doesn’t look pretty.
Fee for service sounds great until the client is uninsurable, needs to postpone implementation of cover, changes their mind, has cash-flow issues and is using super to pay for insurance premiums, misses premiums, needs a review because their situation changes, needs claims advice and help etc etc.
All of these ongoing scenarios will involve an hourly rate and the majority of clients either wont be able to afford to pay or will just choose not to. Some high income clients might not care so much but the average client will not pay for these important services which by the way I and most risk advisers provide automatically as part of our ongoing service to our clients.
Fee for service insurance advice might make some people happy but I doubt the majority of clients will feel the same way. I know the clients I have spoken to are very happy that my business has always been run on a hybrid model and that i provide all those services for free as part of my ongoing service package.
Id love to see their before and after SOA’s…on a range of risk proposals…because that will show the (almost) true picture if what’s happening here not this attention grabbing headline!