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IFAs say Click shake-up shows value of advice

IFAs say the business model restructure and job losses at non-advised protection firm Click highlight the value of personal, face-to-face protection advice.

In a shake-up of the firm’s business model, Click will move away from indemnity commission to commission paid on policy renewal. The move has resul-ted in over 50 job losses at the company’s Farnham and Manchester offices.

Joint managing director Ray Flannery says: “Our intention is to move to a non-indemnity commission basis to position ourselves for the impact of the RDR. Our industry has challenges with indemnity commission but progress is painfully slow. We look forward to add-ressing these challenges in the future and emerging all the stronger for doing so.”

Master Adviser senior partner Roy McLoughlin says: “This goes to show that people should not underestimate the value of faceto-face advice as persistency rates tend to be much higher than non-advised sales.”

P3 Wealth Management managing director Frank O’Donnell says: “It is crucial that people get advice based on their personal circumstances and what they can afford. There is no way that the one-size-fits-all approach can work.”

CBK Colchester director Peter Chadborn says: “The market is evolving in ways which are hard to predict but the one certainty is that doing nothing is not an option. Click’s plans reflect my belief that reliance on indem-nity commission is a dangerous position to be in.”

In May, Money Marketing revealed that Click owed Fortis £900,000 in clawback commission. A Fortis spokeswoman would not comment on the situation but said that new business with Click accounts for less than 1 per cent of its total new business.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I don’t get the “challenges with indemnity commission” comment. I’ve no challenge with indemnity commission as my business has excellent persistency and all the companies I want to deal with are happy to offer me it. Maybe the challenge here is that insurers won’t offer it – they’re too afraid they’ll take a roasting like Fortis.

  2. hi everyone, this is a bit of a joke really, the way your all just arguing. i lost my job on thursday 22nd december, as an employee of Click GI (home insurance). i was top sales this month and last month earning huge comission, i had 116 policies going live to start in december which meant my bonus was about 1250 for january and my full pay for december was meant to be over 2000 after tax and n.i im now being told by the callcentre manager im not going to be recieving a penny! im owed well over 3000 by click and basically for the last month i have just worked for free, iv been to the citizens advice and they have simply told me that i will probably never see a penny of the money im owed. to be honest i couldnt care less about Click oweing fortis money, all i want is my wage even if it was without comission. im sat here with no money atall! no christmas presents for my family no rent, no money i earned! yeah i pushed a few sales through simply by explaining there is no cancellation fee with our home insurance and i do agree you get pushed for more and more. my bonus went from 450 in month1, 550 month2, 600 month3, 750 month4, 800 month5, 900 month6 and now 1239 in month seven simply because i worked my arse off for it! I GOT SCREWED BY CLICK! yeah it was good when i was earning that but now im simply screwed! no money no job no rent what the fuck am i supposed to do now? even if i get a job iv got to wait a month to be paid…. how am i going to pay to get there, what am i going to do for lunch money or my own food taken in? but i come on here and your arguing about how every1 at click is in the wrong. yeah maybe click was, but its staff werent! i have never misinformed a customer! i have never sold cover i didnt think was enough to cover their home! i have never screwed somebody else to earn my money! i earned it myself! i worked for it! i sold 116 home insurance policies for december! but look at me now, iv got nothing! fuck click! i loved that place, its been one of the best years of my life working there and now its gone thanks to ray flannery, steve teague and graham hugill. of course im going on a bit of a rant but in the situation im in i think im entitled to it. i know 4 couples who worked at click and now have all lost their jobs both the husband and wife, what are they going through right now? i cant imagine having kids and being in their position!
    i havent got a clue what i can do about this atall so if you can help me in any way i would be very grateful and would pass any advice onto my fellow ex colleagues. johnwilliamson123@hotmail.co.uk
    even if you dont like click please dont judge the employees because its those MD fuckers who are responcible for this

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