3 Year Commission Structure
It's too good to be true - Halifax General Insurance is offering intermediaries an industry first - the option to receive 3 years commission upfront for self-fulfilled home insurance sales via our online system.
How does it work?
3 years commission is paid upfront in the month following policy inception.
Then commission is paid monthly from year 4 (month 37) onwards providing the policy remains on risk. A clawback structure applies to policies cancelled during the initial 3 year period. We've taken on board your feedback and have improved the clawback structure for 3 years commission upfront. For further details on this, see the section entitled 'Clawback Structure'.
The benefits for you
- Similar levels of commission to a mortgage - 3 years commission equates to 75% of the first year premium
- Money in the bank - today
- Choice - you don't have to opt into 3 years commission. You can stay on the original structure if you prefer
The benefits for your clients
Competitive cover
- Half price Contents Insurance when bought with Buildings Insurance*
- Option to pay monthly at no extra cost
- Transfer clients' existing claim-free years for up to 30% no claims discount
- A range of free extras, including membership to our key recovery service and a 24 hour home emergency helpline
Quality cover
- Unlimited buildings cover - your clients' home is automatically covered for the full cost of rebuilding
- Unlimited contents cover (Single and High Risk item limits apply)
- Quick and hassle-free claims service
- UK-based Call Centres - in case your broker's client ever needs to contact us
- 1.4 million customers already benefiting from Halifax Home Insurance, so it's a name the clients (and you) know they can trust.
What do you need to do? It's straightforward...
If you are Directly Authorised:
- Access the 3 Year Commission Upfront Application Form on the Insurance Literature Library page
- Complete the form and email to 3yearcommission@halifax.co.uk - please note the terms and conditions, clawback structure and lead times. We'll let you know when the 3 years commission structure is ready for you to use.
- Sign onto Halifax online system and trade in the usual way
- In the 'Select Payee Name' drop down box, select the appropriate payee name:
- For the original 1 year commission upfront, select your existing payee name
- For 3 years commission upfront, select the payee name that starts 'GI Plus'
- You can select which commission structure you receive on a case by case basis
If you are Directly Authorised and have a payment route linked to a national account:
- Your Principal needs to have opted into to receive the 3 year commission upfront structure. You need to check with your Principal directly to confirm if they have signed up to the new commission structure.
- Once you have confirmation your Principal is signed up to the 3 year commission deal, simply follow the DA instructions above
If you are an Appointed Representative:
- Your Principal needs to have opted into to receive the 3 year commission upfront structure. To do this, you can check with your Principal directly to confirm if they have signed up to the new commission structure and the agreed launch date.
- Once your Principal has signed up to the 3 year commission upfront structure and the associated permission have been applied to each AR, sign onto the online system in the usual way.
- In the 'Select Payee Name' drop down box, select the appropriate payee name:
- For the original 1 year commission upfront, select your existing payee name - your Principal's name
- For 3 years commission upfront, select the payee name that starts 'GI Plus' and has your Principal's name on the end
- You can select which commission structure you receive on a case by case basis
Clawback Structure
3 years upfront commission will be paid in the month following policy inception. Commission will then be paid monthly from year 4 (month 37 onwards), providing the policy remains on risk.
We've taken on board your feedback and have improved the clawback stucture for 3 years commission upfront. The changes mean a huge reduction in the clawback from month 13 onwards, so you retain a bigger chunk of your commission should your client cancel their policy after the first year. The revised clawback structure for 3 years commission upfront is as follows:
Policy cancels in: |
Clawback & applied |
|---|---|
Month 1-12 |
100% |
Month 13 |
67% |
Month 14 |
64% |
Month 15 |
61% |
Month 16 |
58% |
Month 17 |
56% |
Month 18 |
53% |
Month 19 |
50% |
Month 20 |
47% |
Month 21 |
44% |
Month 22 |
42% |
Month 23 |
39% |
Month 24 |
36% |
Month 25 |
33% |
Month 26 |
31% |
Month 27 |
28% |
Month 28 |
25% |
Month 29 |
22% |
Month 30 |
19% |
Month 31 |
17% |
Month 32 |
14% |
Month 33 |
11% |
Month 34 |
8% |
Month 35 |
6% |
Month 36 |
3% |
Eligibility criteria:
- 3 year commission upfront is available on Halifax Buildings & Contents only, sold via the Halifax and Bank of Scotland online platforms.
- The new structure applies to self serve home insurance cases only. Commission on home on all sales of Mortgage Repayments Cover (ASU) will continue to be paid on current terms
- It's applicable for new business only - business already written remains on previous commission arrangements
- The offer is open for a limited period and may be withdrawn at any time
*On completion of the quotation you will need to advise all customers that half price cover is compared to buying contents separately during the limited offer. Excluding Halifax home insurance renewal customers. If they cancel their buildings cover, they will be charged the full contents premium for the remaining term. The offer is limited and can be withdrawn at anytime.
