Just over two years since Vero made its unpopular decision to slash broker commission on personal lines policies by 7.5%, they are returning to the old level of 22.5%.

The company is giving intermediaries the option to charge the previous figure under a new arrangement designed to make brokers more flexible.

Suncorp spokesman Rob White told InsuranceNEWS.com.au brokers will now be able to adjust their standard commission up or down from 0% to 22.5%.

“Vero is not raising broker commissions outright,” he said. “We are giving brokers the flexibility to adjust their own commission up or down.”

He says this will give brokers “much more ability to compete in the personal lines market and negotiate with their clients”.

The changes are effective immediately for new customers and from June 18 for renewals.

Vero says it is also dropping its new business premiums (before commission) by an average of 20-25%. “The exception is Queensland, where business rates (before commission) will increase by about 5% to 12.5%,” Mr White said.

“Queensland has been severely affected by natural hazards for a number of years. Consequently, following an in-depth review, Vero has made changes to its home insurance portfolio to ensure it remains competitively priced but sustainable in the long term.

“Vero is also investigating opportunities to incorporate premium reductions for customers who undertake disaster mitigation measures.”

Private motor premiums have had a flat 20% reduction applied for new business nationally before commission, and Vero will review renewal rates for private motor in September.