Intermediaries are overwhelmingly (91%) in favour of commission options in the group insurance market, Canada Life Group Insurance has said.
Research amongst IFAs on attitudes towards remuneration, and forthcoming legislation, revealed at the Protection Review, found the preferred payment model was commission expressed as a percentage of the premium (35%).
Just over half (56%) of intermediaries prefer monthly payment, compared with 26% preferring annual payments.
A number of alternative remuneration structures were suggested, including; A fee based on the customer saving at the end of the rate guarantee period; A fee per scheme for ongoing management.
Paul Avis, sales and marketing director at Canada Life, said: "With the distribution of group risk products under scrutiny in an era of the Retail Distribution Review, NEST, and Welfare Reform, we wanted to understand how advisers felt about their levels of remuneration for selling group risk products.
"It is important the industry continues to assess the suitability of products and whether the level of remuneration flexibility is adequate to encourage and sustain market growth.
"The ability to opt for higher commissions (up to 30% of annual premium) on smaller schemes means that intermediaries feel they are adequately remunerated for the work that they put in.
"Today's remuneration model gets the thumbs-up for the time being at least, but there are a number of interesting challenges approaching that may mean that we need to review what is on offer."
