Insurance companies are increasingly investing in improving their systems to ensure advisers are paid commissions in a timely manner.
This is according to insurance technology company Sungard, which states there is growing demand from insurers for risk solutions that ensure they can keep advisers on side.
“There is definitely a trend towards this. Distribution channels are only satisfied if commission payments are made in a timely manner. Insurers are investing in channel management solutions for sales and compensation of commissions to distribution channels,” said Peter Haslebacher, chief operating officer for Sungard’s Asia Pacific insurance solutions.
He said the distribution channels include financial advisers, as well as brokers, agents and web. There is a push to reduce costs associated with distribution, and to protect the consumers’ investments.
The ultimate decision will lay with the insurer you’re using, says Haslebacher. “It is up to the insurer to decide how important each distribution contributor is in the overall distribution mix. Paying timely is key to the effectiveness of the distribution organisation… It is all about keeping the channel contributors motivated and focussed.”
Haslebacher says insurers acknowledge that the faster advisers are rewarded, the more effective and efficiently they will respond to try to achieve targets.
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