Commissions, Conflicts of Interest and Incentives

Premium Finance receives commissions from the providers on whose products we give financial advice (insurers, banks, lenders). If you decide to take out insurance, personal loan or a mortgage the provider will pay a commission to Premium Finance. The commission is generally of an upfront nature ranging between 20% to 140% for Health Insurance and 190% to 230% for Risk Insurance of the total yearly premium (minus the policy fee) and between 0.45% to 0.85% of the total loan amount for Mortgage and Home Loans. Our commission may also include a small renewal or trail commission ranging between 7.5% to 10% for insurance and between 0.15% to 0.2% for mortgages. We also do receive a fixed rate roll over fee from some providers if we assist in re fixing your loan. These commissions can be clawed back by the insurance company or the bank/lender if the policy/loan is cancelled/changed/paid off in the first two years.

A full schedule of all providers and their commission rates is available on request.

From time to time, product providers may also reward us for the overall business we provide to them. They may give us tickets to sports events, hampers, or other incentives.

However, we prioritise our client’s interests above our own. We don’t have any quota system with any insurer or bank/lender and follow procedures that is solely based on what is in the best interest of our clients. We also keep a register monitoring these gifts and incentives.

Clawback

Premium Finance may charge a fee for the financial advice provided to a client where a client cancels, lapses or reduces a life or health insurance policy within 24 months of inception and for a mortgage/home loan within 27 months of inception. This fee will be discretionary and will not be charged if the client cancels or reduces a life or health policy due to financial hardship. This fee will be $3,000 per policy or home loan. However, if it takes us more than 10 hours to perform the service, the fee will be calculated on the following basis: $3,000 + $180 per hour above 10 hours. This fee will be payable by the client by the 20th of the month after the policy is cancelled.