General insurance brokers must act now to cut out certain forms of remuneration, Steadfast has warned.

Speaking on the recently launched Steadfast TV, EGM Partner & Broker Services Nick Cook highlights the upcoming review of commissions that was recommended by the Hayne royal commission.

He says the review is expected either next year or in 2022, but that “we need to do the work now”.

He says that “our form of remuneration going forward will be commission” but that some other forms of payment are likely to face the axe.

“Volume-based incentives, over-riders – those types of contingent remuneration we expect they’ll go,” he says. “So if you are involved in any of those now, I’d start weaning myself off them.

“I think our insurer partners will actually start making those moves themselves in any case.”

Mr Cook says Steadfast will work with the National Insurance Brokers Association (NIBA) to ensure the industry puts its “best foot forward” when the review comes around.

He believes a Deloitte Access Economics study commissioned by NIBA will be crucial in proving broker value.

“I dare say…that a lot of our politicians wouldn’t know the value we bring as insurance brokers to our communities and the businesses and the people within those communities,” he says.

“We want to put the best foot forward and make sure we have got a really compelling case to put forward to the inquiry, and we will.”