Advisers who do not advise on private medical insurance (PMI) products are losing out on commission ...
Advisers who do not advise on private medical insurance (PMI) products are losing out on commission because they are failing to refer clients to specialist PMI brokers.
Most specialist brokers offer a share of commission for client referrals from IFAs, yet few are taking advantage of this income stream, according to Stephen Walker, chief executive of Private Medical Insurance Services.
'Many IFAs do not want to get involved with private medical insurance as they think it is a lot of hassle and does not provide the same commission as other financial products,' he said.
According to Walker, if more advisers referred PMI business, it could help increase the earning power of both IFAs and specialist brokers.
'If they refer the client to a specialist broker instead of another IFA who advises on PMI, there is no risk they will lose out because of cross-selling on other areas of business. With a commission split, everyone wins.'
