Aegon is calling for product providers to work together to move away from high up-front commission levels on many products and work together to help reduce the level of churn.
Director of risk and regulation Graham Dumble said providers are becoming increasingly aware of the problem of churning and recognise that this is in part encouraged by inflated up-front commission.
He said providers should work together to review their payment structures and cut commission where possible.
Dumble said: “I think that the provider community is at last stepping up to these issues. There are some tough issues and some reputational issues that we have to face up to.
“Some of the up-front commission that is too high will come down at some point and providers have an obligation and a need to help with some of the transitional financing that is being talked about. We should try and start to do that on a collective basis rather than on an individual basis.”