Freedom Insurance will transfer its policy administration services to Genus Life Insurance.

Under a transition agreement struck with Swiss Re, Freedom’s product development and distribution and policy administration deals with insurers NobleOak, AIA and Swiss Re will be terminated.

Freedom came in for harsh criticism at the Hayne royal commission over its sales practices, and under the new agreement will no longer receive trail commissions and other revenue from the insurers. Nor will it be required to make commission clawback payments to Swiss Re.

Swiss Re will pay $5 million to Freedom for the sale. As insuranceNEWS.com.au has reported, the money will be used to pay creditors, wind down operations and meet regulatory obligations.

“The Freedom board over the past few months has been very focused on delivering the best possible outcome for all stakeholders including policyholders, employees and shareholders,” Freedom Chairman Pauline Vamos said.

“Unfortunately the business has not been able to recover from the cessation of product sales in September [last year].”

As part of the agreement Swiss Re will manage Freedom’s customer remediation program.