Insurance distribution reforms: will lower commissions benefit policyholders?
Teni echoed the same sentiment. “Assessing the impact of distribution reforms requires more than looking at aggregate commission or expense figures. In retail insurance, a granular assessment of distribution costs, underwriting performance, claims experience and overall product economics is important. Equally, the assessment should examine whether any savings translate into tangible customer benefits, including improved affordability, coverage and service. This would provide a more complete basis for evaluating the likely impact of the proposed reforms,” he said.
