Partners revealed their updated commission structure. Advisers will receive their Medical commission in two parts, an initial commission and a bonus commission. As a result, this will reduce the initial Medical commission from 125% to 100%.
“We communicated the introduction of the Customer Outcomes Matrix (COM) which has been very well received by both advisers and customers. We have finalised the development of the data capture component of COM and are now working on the development of the COM score thresholds for each of the measurement criteria. As a reminder your Bonus Commission rate is underpinned at your existing rate until 31 March 2021.
As we initially communicated, we are also splitting Medical commissions between Initial and Bonus commission which means Medical Initial commission will reduce to 100% (from 125%) and introduce a Medical Bonus commission of 25%. This will enable us to reflect results of the COM for the medical component of a customer’s policy as it will do for Risk products.”
Partners also recently announced that they will go forward with FAPO payments for businesses that have approved transitional licences and who have FAPO Commission Agreements in place.
“As well as the introduction of the COM and changes to Bonus Commission, we are also going live with FAP Override (FAPO) payments for those businesses who have an approved transitional licence and have signed their FAPO Commission Agreement with us. If you wish to progress in signing a FAPO Agreement with us, please ensure that you provide us with a copy of your transitional licence. You can email a copy to firstname.lastname@example.org.”
As a result of COVID-19 implications, Dealer Groups will receive FAPO payments for members without transitional licences as long as they have been members prior to 1 July 2020.
“Given the impacts of COVID-19 in delaying the FSLAA transitional licensing date, Partners Life has agreed to continue to pay override to Dealer Groups for those advisers who do not have a transitional licence and were members of the Dealer Group prior to 1 July 2020. We will continue to pay the Dealer Group override until such time as you provide Partners Life with a copy of your transitional licence and proceed with a FAPO agreement with us, or until FSLAA comes into effect in early 2021.”
In other news:
Fidelity Life: results of financial impact of COVID-19 were shared. The main points were:
- 15% of advisers felt that their business been financially impacted. 40% felt there was some business decline and 45% said they qualifies for assistance package.
- 16% of advisers felt that their financial situation would become much worse within 3 months. 10% felt would become much worse in 6 months. 7% felt would become much worse in 12 months.
- 3% felt that their financial situation would become much better within 3 months. 10% felt would become much better in 6 months. 22% felt would become much better in 12 months.
- 53% of advisers were confident they’d get through current and future financial impacts while 1% of advisers didn’t think they’d get through current and future financial impacts