Brokers who use the ‘Self-Serve’ option to sell clients general insurance policies will, under the revised structure, receive commission upfront for the first three years and thereafter monthly payments for the life of the policy.
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Halifax claimed the upfront payments over the first three years equated to roughly 75 per cent of the first year premium and it confirmed the move was an attempt to introduce more brokers to the ‘Self-Serve’ proposition.
Jon Craven, head of mortgage intermediaries at Halifax General Insurance, said: "Halifax General Insurance has invested heavily in the mortgage intermediary channel over the last couple of years. We’ve listened to brokers and refined our products and systems to ensure quality and value for the customer, simplicity of sale and a decent return for the broker.”
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Mortgage intermediaries can also opt for the current commission structure if they wish, while those who refer their clients directly to Halifax would also be eligible for the new structure.
David Mead, managing director of Flexible-mortgage.net, commented: “Halifax has always had a strong general insurance proposition but in terms of introducing clients, the commission is tempting but I would not be happy about a third party contacting my client, especially as many intermediaries have concerns with Halifax over past cross-selling.”
