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INsight podcast: minister gives clues on commissions

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Financial Services Minister Jane Hume’s comments on commissions are a key talking point on the latest edition of the Insurance News podcast.

INsight, hosted by Insurance News Managing Director Andrew Silcox, this week features the observations of Managing Editor John Deex, Deputy Editor Wendy Pugh, and Senior Journalist Bernice Han.

Ms Han outlines Ms Hume’s comments in a speech to the Financial Services Council’s Life Insurance Summit last week, and the panel discusses their potential relevance to general insurance brokers in the light of an upcoming remuneration review.

Ms Hume said that while change is coming, “that does not mean that there is no future whatsoever for commissions”.

“The issue with commissions is not their existence per se. The issue is when they influence the advice provided,” she said, while also recognising a flat fee model “can be a challenging business proposition”.

“Consumers struggle to understand what they are paying for. They may not have the cash to pay upfront themselves.”

Other issues discussed in the podcast are the latest trends in the D&O market, local government class actions against JLT, and why there could be more female-focused insurance products heading to Australia.

You can find a new episode of INsight published here every Wednesday.