By Rachel Williams. . PPP healthcare is revamping IFA commission on new and renewal corporate busi...
By Rachel Williams.
.
PPP healthcare is revamping IFA commission on new and renewal corporate business in a bid to control costs.
On small company paid schemes and voluntary products initial commission will rise from 10% to 12% while renewal will fall from 10% to 8.
On experience-related business, commission will fall from 5% to 3% on full insurance contracts and from 4% on cost plus contracts.
On schemes above £400,001 commission will be negotiable with nil default on full insurance contracts and 0.8% default on cost plus contracts.
Vincent O'Shea, sales director at PPP healthcare, said: "The changes to our commission structure are but one of a number of essential measures we are introducing to control the costs that affect the cost of medical insurance to companies. This will safeguard the market for IFAs and PPP healthcare alike.
Despite the changes, PPP said it did not want to change its relationship with the intermediary sector and emphasised that it was not moving towards net pricing for intermediary-held business.
"The cost of PMI is continuing to rise at a speed that is damaging to the market in which we work in partnership with intermediaries," O'Shea said. The company has introduced a network of hospitals in what it claims is a move to tackle the costs of over-provision and under-utilisation in the private sector.
PPP says that this has had positive impact on claims costs. PPP has also rationalised its offices saving £30m in operating costs.
