Cigna New Zealand announced details of the new committee structure that came into effect earlier this week.
Friday, April 16, 2021 1:59 pm
According to the Cigna website, the new simplified commission structure pays advisors for renewal commissions from the second month, all advisors receive 100% commission, and “on-earning” payment options Introduced and more discount options available.
Cigna’s top brass announced last Thursday in a live webcast to more than 1,200 advisors and industry commentators, but details of the changes weren’t available at the time.
According to the release from Cigna, renewal commissions will be paid from the second month and new benefits or policies issued after April 12th will be based on the new commission (see table below).
“We are aware that our service to our customers will not begin in the 13th month, but will begin the moment the policy is published.
“In the new regulatory environment you are currently operating, we allow the extra time and work you dedicate to your business,” the company said.
Another change brought about by Cigna is that all advisors, regardless of persistence level or group affiliation, will receive 100% of Cigna’s documented commission rate.
“We can help facilitate the division of commissions you need to do, but you have complete control over where it goes.”
Cigna has also introduced an “on-acquisition” payment option where advisors get the option to receive commission payments in the first two years instead of prepayment.
“With this option, there will be no clawback if the policy expires in the first two years.”
Regarding discount options, Cigna says it has added more options to its discount options.
“Updated commissions to include the best features on the market reflect our ongoing commitment to you and to give New Zealanders continued access to the quality advice you provide. It will help. “
Cigna states that when a book is sold, the commission will be moved to a new advisor and paid monthly instead of a one-time payment.
In addition, FAP holders do not have to overwrite fees and all advisors can use the same rate. “This does not affect the commission rates offered,” Cigna said, while continuing to monitor continuity, conversion rates, and customer feedback received.
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Cigna will apply new fees to advisors
Source link Cigna will apply new fees to advisors