PruHealth is set to launch four new commission structures for its individual private medical insurance business.
Advisers will be able to chose which of the four structures suits them best from 1 November.
The tiered commission structure will be put in place to reward advisers who place £10,000 worth of business with the provider a month. The current initial commission rate of 45 per cent will remain, but for all advisers who sell over £10,000 worth of PMI an additional 15 per cent commission will be paid, with 5 per cent renewal commission.
PruHealth is offering a 24-month clawback option. The provider’s standard commission rate of 45 per cent operates on a 12-month clawback basis but if advisers opt for the 24-month option the provider will offer 90 per cent commission. No renewal commission is paid under this option.
There is an option for advisers who want to offer PMI to their customers but do not wish to advise on the product. The lead referral option will offer 45 per cent initial commission, with no trail 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: “We have designed these changes to help brokers recover the costs of their initial investment and offer alternative options for generating income at a time when personal and family health remains people’s number one priority in life.
“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.”