ScotProv pulls twoyear earnings deal on protection range
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Scottish Provident is withdrawing the two-year earnings period from the commission terms on its protection product range from August 1.
ScotProv, which is owned by Royal London Group, will continue to offer a four-year earnings period, meaning that if policies are rebroked within four years, there will be commission clawback .
Bright Grey, also owned by Royal London, will continue to offer both two-year and four-year earnings periods for personal protection menu business.
Bright Grey and ScotProv proposition director Roger Edwards says: “This is a way of allowing us to be more competitive on premiums across both brands and also adds another level of differentiation between the two brands.
“If there are those advisers who are absolutely wedded to the two-year period, then we would like to think that they will consider using Bright Grey.”
Edwards says the change in commission terms is also part of a effort to make ScotProv more recognised as a protection brand for high sums assured, as the difference between premiums on two-year and four-year earnings periods is more significant at the higher end of the market.
The changes follow a series of announcements from Bright Grey and ScotProv, including merging the sales teams.
Highclere Financial Services managing director partner Alan Lakey says: “Not every provider offers two-year terms, so Scottish Provident will not stand out but this move is a shame.”
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