It is in talks with some distributors over offering advisers a two-year clawback option on commission payments, alongside the standard four-year model. After two years, L&G would not be able to claw back commission from the adviser if the policyholder cancels their cover, and the adviser would also be able to rebroke the policy.
But an L&G spokesman says: “We are looking at this very much on a case-by-case basis and see no reason to make widespread changes. It would only be available to distributors who submit good levels of quality business and it has to be commercially viable for us.”
Master Adviser IFA Roy McLoughlin says: “It is almost like they are trying to encour- age rebroking. Now that is OK with standalone life cover but, for critical-illness cover, advisers must be careful because certain definitions on the CI policy might have changed for the worse and not be included in a rebroked plan.”