What is ‘Premium Flex’?

Premium Flex is an online facility which allows you the option to sacrifice an element of your commission in order to reduce the premium for the client.

Why has this been introduced?

Following the feedback received agents at recent network road shows it is apparent that price is the key factor when selling home insurance to your clients as you are often competing against direct providers who do not pay commission and are therefore able to offer lower premiums. Being able to provide competitive insurance premiums can have a positive effect on your relationships with clients and encourage further business and recommendations. Obviously this is not compulsory but the option is provided on each new application.

How much will the commission be reduced by?

You can choose to reduce your level of commission by 5%, 10%, 15%, 20% or 25% depending on the product available and the total level of commission you receive. The commission reduction is on a case by case basis and therefore the option to accept reduced commission on one case will have no impact on any future applications.

Is Premium Flex available on all policies?

The option to reduce premium is available on all Buildings and Contents, Landlords and Holiday Home policies.

How do I submit a premium flex case online?

The online application is completed as normal and a list of insurer quotes is produced. At this stage there is the option to select a reduced level of commission from a drop down menu at the top of the page and by clicking on the ReCalc… button the quote are adjusted accordingly to display the total annual and monthly premiums payable by the policyholder. You can then select the required quote and continue to submit the business. Prior to completing the final stage you will be asked to tick a box providing positive confirmation that you agree to accept a reduced level of commission for the case. A quote illustration will automatically be generated showing the premium payable by the policyholder and the discount will be disclosed in the documentation issued by Towergate Home and Protect following the inception of the policy.

What happens to referrals?

‘Premium Flex’ will not apply to overridden premiums i.e. referral cases where special terms are provided by our Underwriting Team.

How will MTAs and Renewals affect ‘Premium Flex’?

All premiums for MTAs and renewals will continue for the policy on the basis of the ‘Premium Flex’ applied at new business. The commission level is set for the life of the policy.