Assurant enforcing trail commissions
It introduced trail commissions in August 2009 and guarantees to pay brokers trail commissions under contract terms as long as the broker concerned is registered with and regulated by the Financial Services Authority.
If the broker deregisters Assurant either offers to buy the book of business or allows the intermediary to transfer the book in-house and move to an introducer status, ensuring they continue to receive renewal commissions.
Kevin Paterson, sales and marketing director at Assurant, said: “There is a lot of discussion in the market right now about the approach being taken toward trail or renewal commissions.
“As far as Assurant Intermediary is concerned, renewal commission is paid to brokers for their valuable role and work in the process, not merely for goodwill.”
Paterson said Assurant Intermediary had written its commitment to renewal commissions into its contracts with brokers and it would stand by its obligations.
“We are committed to working with our intermediaries and making it easy for them to grow their general insurance business,” he added.
“We’re confident that we provide our partners with some of the best products available in the market backed by service that is second to none for our customers.”