The insurance industry already has alternative proposals ready in the event that a commission cap is introduced. This was confirmed by Liechtenstein Life in a survey. According to this, companies have developed net products and alternative sales concepts.

During the DKM – the trade fair for the finance and insurance industry – held in Dortmund in October, Liechtenstein Life Assurance AG conducted a survey among 77 experts on the consequences of a potential introduction of a ban on commission income or commission income cap, as outlined in a press release issued by the Ruggell-based insurance group. The survey responses have now been evaluated and reveal that around half of all respondents expect a drastic reduction in the number of brokers should a ban on commission income be introduced. One in every four respondents, in contrast, sees the introduction of such a ban as presenting a challenge, while nearly 8 percent expect that this would lead to an improvement in insurance products.

The industry has reacted in relatively relaxed fashion to the potential introduction of a commission cap. In particular, 44.2 percent of respondents regard the net police as a suitable alternative. Here, the experts already have their sights set on three alternative remuneration models, the press release explains. In specific terms, these include remunerating consultants by the hour or using bank and net platforms to pre-finance any payments made on the conclusion of an insurance contract.

Stephan Bruckner, Head of Sales Germany at Liechtenstein Life Assurance AG, explained in the press release how the existing uncertainty regarding the potential introduction of a cap on commission income has ultimately inspired creativity within the insurance industry. Bruckner then added that Liechtenstein Life itself has developed an independent factoring solution in conjunction with cashyou this year, which has since been successfully established on the market.

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