Non-GISC advisers can earn a fee by introducing PMI business for NUH
Non-GISC IFAs may still be able to get introducer fees for passing on successful PMI leads under a new proposal from Norwich Union Healthcare (NUH).
The provider has set up the scheme to allow those intermediaries who choose not to join the GISC to remain in the PMI market.
IFAs who accept introducer status from NUH will not be allowed to offer advice or to sell PMI to clients. But, if they pass a lead onto the provider's specialist healthcare bureau unit that leads to a sale they will be financially rewarded. The exact amount has not yet been clarified, but the provider plans to contact IFAs with further details in the near future.
Jack Briggs, head of intermediary sales for NUH, said: 'We fully support the GISC and believe it will bring significant benefits for the industry. But we do recognise that those IFAs for whom PMI is not a core part of their business, will still want to meet their clients' needs, and Norwich Union's introducer status allows them to do that. This innovative approach demonstrates NUH's commitment to all our intermediary customers.'
A number of other providers have admitted they have considered offering introducer fees but decided against it, due to concerns about mis-selling and the need for advice.
Steve Flanagan, director of sales at BUPA, said: 'BUPA looked closely at this but decided against doing it for the moment because of the potential problems that could be stored up for the future. In theory, individual customers could return later and say advice was given at an earlier stage, which could cause serious problems for intermediaries. The implication could be that the best advice was not given.'
Iain McMillan, intermediary sales manager at Standard Life Healthcare, said the company had also considered this route, but would rather support independent advice.
'The main concern for IFAs is that clients go to them for independent advice. If they pass them on to a provider for an introducer commission it is not necessarily going to be the best policy for the client. In an ideal world, those IFAs who do not want to join the GISC would form alliances with specialist healthcare intermediaries for an introducer fee, thereby giving clients independent advice as well as a choice of products,' said McMillan.
