Financial Index Wealth Accountants (Findex) will introduce a commission-free life insurance product engineered by BT later this year, and it says more will follow.

Chief Adviser Michael Wilkins says all new life policies sold through Findex and Centric will be commission-free.

“The group has plans to extend the range of providers in coming months, once negotiations are complete with other life insurance companies. This new life insurance product will offer lower life insurance costs to our clients, ranging from moderate savings to as much as 30%, with the actual quantum depending on individual client circumstances.

“These commission-free policies will involve a net premium expense and an annual, transparent, administrative service fee.”

Mr Wilkins says legacy systems and high upfront commissions have impeded change in the life industry.

“Findex has been looking for suitable partnerships with responsible life insurers for several years, well before the Trowbridge review of the life industry. We were concerned about the futility of high-commission products, in that they simply encourage churn.”

Mr Wilkins says while the dealer group welcomes the Trowbridge report, it believes commission-free products are the future.

“We are delighted product developers such as BT have been able to create a product that is consistent with our philosophy. The Findex commission-free life product will be rolled out to all the group’s divisions later this year once appropriate systems are in place.”