Press Release
Paymentshield announces new commission structure
Paymentshield - the UK's largest independent supplier of mortgage related general insurance products to the intermediary sector - today announces a new commission option for its Intermediary customers.
This new option adds to the already very flexible commission options available from Paymentshield which includes Monthly Accrual, Initial Indemnity and Annual Indemnity
New Double Indemnity option
Intermediaries signing up for the Double Indemnity option will receive an upfront lump sum of 24 months of commission in month one of the policy start date. After 24 months, the commission payment will revert to Annual Indemnity.
Based on a typical commission rate of 27.5% an Intermediary would be paid 50% of the total annual premium in month one and Annual Indemnity of up to 27.5% on month 25 and annually thereafter.
All Appointed Representatives will receive 27.5% trail commission from month 25. This also applies to Directly Authorised intermediaries who write over 100 cases per annum with Paymentshield, which are still on risk. Those who write less than 100 will receive a still very competitive 25% which will be reviewed annually.
With the Paymentshield straight-line clawback structure, if a policy is cancelled within the first 12 months of its start date, Intermediaries won't lose the commission already earned. Unlike with Halifax, where they clawback 100% within the first year1.
Assuming a customer took out a Buildings & Contents policy with a premium of £25 (excluding Insurance Premium Tax ) per month their adviser would be paid £150 in month one and £82.50 in month 25 and annually thereafter.
Chris Traynor, Sales and Marketing Director at Paymentshield comments: "We have worked very hard to review our commission structure over the last year to ensure intermediaries are appropriately rewarded for their efforts and to bring innovative initiatives to the market. We believe this new proposition offers great choice and flexibility to suit the intermediaries' needs and business structures. It should be particularly attractive to those Intermediaries who are considering selling GI as it really kick starts their earning potential."
Jim Coats, Proprietor/IFA at One Stop mortgage shop said: "Paymentshield's new commission structure is much more suited to our business offering. It's great that companies like Paymentshield are listening to our feedback and reflecting this in commission structures which are more flexible and user-friendly. Their straight-line clawback structure also means that there are no hidden downsides."
1Source: Halifax General Insurance.
-ENDS-
Notes to Editor:
1. Agencies that have signed up for Double Indemnity will be paid:
- a lump sum of commission in month 1 for new polices only, calculated at their current commission percentage x 24 x a discounting factor of 0.90909090909
- No further commission on that policy in months 2 - 24; and from month 25 will revert to "Annual Indemnity" commission as currently understood of up to 27.5%.
- In addition, the clawback profile will be linear through the first 24 months. Commission paid for the free cover period will clawed back if a policy is cancelled during the first 6 months.
- The discount rate will be applied to both the override and core agent commission levels.
Photographs are available.
About Paymentshield
Paymentshield Limited is the largest independent supplier of general insurance products to the mortgage intermediary sector. Paymentshield only sells through intermediaries and over 27,000 intermediaries have chosen Paymentshield.
For all further enquiries, please contact:
Sandy McPherson
Head of Marketing, Paymentshield
Tel - 0131 338 5151 / 07854 620 163
E-mail - sandy.mcpherson@paymentshield.co.uk