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PruHealth launches new PMI commission structures

PruHealth has launched four new commission structures for individual private medical insurance business.

Advisers can chose which of the four structures suits their business best.

There is now a tiered commission structure to reward advisers who place £10,000 worth of business with the provider a month, which offers 15 per cent commission on top of the standard initial 45 per cent commission and 5 per cent renewal commission.

PruHealth is also offering a 24-month clawback option paying 90 per cent commission. There is no renewal commission with this option. The provider’s standard commission rate of 45 per cent operates on a 12-month clawback basis.

The lead referral option will offer 45 per cent initial commission, on a 24-month clawback basis.

Finally, single tie advisers will be offered enhanced commission rates and technical support in setting up their PMI advice processes.

PruHealth sales director David Priestley says: “With the advent of the RDR along with other market dynamics, a fantastic opportunity exists for brokers and other non-specialist advisers to consider PMI as a growth opportunity and we are looking at ways of making it as easy and attractive as possible.”

Regency Health principal Brian Walters says: “Offering 90 per cent initial commission with no renewal is a bold move in a market where average commissions are 50 per cent initial and 5 per cent renewal.

“The concern is that it could skew advice and encourage churning after the 24-month clawback period.”

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