In September last year, the insurer axed upfront medical commissions in favour of as-earned commissions, because it was getting higher volumes of medical insurance than expected.

A lack of reinsurance financing for medical insurance meant that commission payments had to come out of capital.

The company had been on track for $50 million in issue premium last year. “That’s too hot when you are paying upfront medical commissions.”

Instead it had $37 million, managing director Naomi Ballantyne said.

The change led to a slow-down in business, which had prompted the restructure.

Ballantyne said seven months had passed and it was an appropriate time to consider how the firm’s budgets were being spent. “Expenses were higher than they should have been for the volume of business… efficiency is a serious part of our strategy.”

Partners Life’s headcount was reduced by eight, although the number out of a job was higher than that as senior underwriter positions were replaced by more trainee underwriters. Other people made redundant included sales administrators and operational roles. “We picked places where on balance we felt we could do without one of the jobs.”

Ballantyne said the company was sad to have lost people. “The restructure is difficult for everyone but particular for those who haven’t got a job and hadn’t done anything wrong.”

But she said Partners Life had to be sure that every dollar was spent properly.