Changing how commission is paid in the protection sector could be beneficial to newer entrants.
This is according to the Guardian chairman, Peter Mann (pictured), who was speaking at a ‘Meet the CEO’ event for new CEO, Carlton Hood, in the City of London earlier this week.
In launching its review of the pure protection sector last summer, the regulator revealed it would focus on loaded commission, product churn and insurer competition.
And this spring, industry experts called on the FCA to recognise the need for flexibility in commission following the release of the terms of reference of the regulator’s Market Study.
Benefitting new entrants
Asked for his opinion about the Market Study at Guardian’s event this week, Mann maintained that a cap on commission could benefit new entrants, competition and probably Guardian.
“Because as a new entrant still finding its way through the profitability conundrum, then easing of commission or having commission paid in a different way or at a lower level would probably be beneficial,” he explained.
Tailwinds rather than headwinds
Mann said that generally speaking in its representations to the regulator, Guardian has focused on competition, a fair, equal and growing market and consumer outcomes commensurate with the product that they purchase.
“So that would be my assessment,” he continued.
“I always say this with trepidation about the FCA, but I think given what we know at this point in the time, we see tailwinds rather than headwinds.”
