Humania Assurance has informed its advisors that the level commission option will no longer be available on the HuGO Life Insurance product sold via the insurer’s digital platform.
Up until Sept. 10, HuGO Life Insurance offered two commission options: the regular commission (highest in the first year, called high and low in industry jargon) and level commission. "The HuGO platform offers 10 year, 20 year and 30 year term life insurance," said Stéphane Rochon, President and CEO of Humania, in an interview. The use of the level commission option is rather marginal on these products, even minute. Everyone checked the same box."
By making this decision, Humania is also doing away with a dual commission management system. "There were areas in our systems that were dedicated to the processing of level commissions, which we can now use to manage something else," he explained.
Level commissions still available for other products
Rochon added that level commission is still available on all other Humania products, in particular living benefits products. "The level commissions culture is more firmly embedded with products like disability insurance," says Rochon.
Although level commissions on life insurance may be more advantageous for many advisors in the long term, clearly it has not caught on in the industry as a whole, he concluded.
