Findex launches ‘commission-free’ insurance product
In partnership with BT Group, non-aligned financial services provider Findex Group has launched a new life insurance product which will have no built-in commissions.
The launch of the new insurance product follows the decision by the non-aligned group to move to a fee-for-service model for all risk advice.
According to Findex chief of adviser services Michael Wilkins, the "commission-free" product – which will originate from the BT Group – will offer lower insurance costs to clients.
"[These savings will range] from moderate savings to as much as 30 per cent, with the actual quantum depending on individual client circumstances," he said.
"These commission-free policies will involve a net premium expense and an annual transparent, administrative service fee."
Mr Wilkins added that the group has plans to extend the range of providers in coming months once negotiations are complete with other life insurance companies.
Findex has been looking for "suitable partners with responsible insurers for several years" because the group was concerned about the "futility" of high commission products as they "simply encourage churn", he said.
"The history of the industry and its legacy systems – combined with the dominant culture of high up-front commissions in the advisory industry – have been impediments to change so far," Mr Wilkins said.
"We welcomed the Trowbridge Report but have always believed in aiming higher by seeking a 100 per cent commission-free model."
The commission-free life insurance product will be rolled out across all the group's businesses later in the year once appropriate systems are in place, he said.
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