Suncorp has decided to pull the plug on its corporate agent model, with around 80 Queensland agents expected to decide their future within a year.

The agents have been given three options: they can take their book of general insurance clients and operate as brokers or as authorised representatives (ARs) of a broker; they can hand back their book and get paid out one year’s commission; or they can keep selling life insurance products as financial services ARs of Suncorp.

A Suncorp spokesman told insuranceNEWS.com.au the company has completed a review of its corporate agent distribution channel as part of its ongoing focus on business improvement.

“We are working with each corporate agent to consider operating under an alternative distribution model with increased scale and capability and lower operating costs, such as an authorised representative or a broker,” she said.

A Suncorp corporate agent, who does not wish to be named, told insuranceNEWS.com.au there has been a fair amount of distress among the agents, particularly as most of them are aged over 50 and had planned to exit the industry in five to 15 years.

“Nothing is sure in this world, particularly in financial services, but there was no inkling of this,” he said. “There was no discussion.”

Suncorp’s rural product, which is one of the major products supplied by the mainly regional-based corporate agents, will go immediately.

“They’ve been there for decades,” the agent said. “Some of these people have had policies with the same families for 20-plus years so there’s a huge personal connection there.”