Insurance

FMA says commission drives churn

Wednesday 29th of June 2016

The FMA requested four years' data from the 12 main insurers in New Zealand to conduct research on replacement business.

It looked only at insurance advisers - not banks or other product providers - because while they might have a risk of mis-selling, the FMA said it was only advisers who could "churn" - move clients for the benefit of the adviser - multiple times.

FMA director of...

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