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.”