Pursuant to provision 4.56 and 4.58A of the Central Bank of Ireland’s September 2019 Addendum to the Consumer Protection Code, all intermediaries, must make available in their public offices, or on their website if they have one, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the intermediary which it has agreed with its product producers.
Remuneration is the payment earned by the intermediary for work undertaken on behalf of both the provider and the consumer. The amount of remuneration is generally directly related to the value of the products sold.
Fees are an expense charged to cover costs associated with opening, maintaining, charging, or closing an insurance policy.
Commission is payment that may be earned by an intermediary for work undertaken for both provider and consumer. General insurance products, such as motor, home, travel, health, retail or liability insurance, are typically subject to a single or standard commission model, based on the amount of premium charged for the insurance product.
As a type of intermediary known as a Managing General Agent (MGA), Prestige does not carry out business directly with a consumer. All business we manage is placed via another intermediary (the Broker) so we will both earn commission for our work on behalf of the product producer but also pay commission to the broker for their work arranging the insurance.
At this point we would like to advise our customers that any commission received or paid does not affect any remuneration or benefits staff may receive. All products offered to our customers are based solely on their demand and needs as identified by their broker.
Clawback is an obligation on the intermediary to repay unearned commission. Commission can be paid directly after a contract is concluded but is not deemed to be ‘earned’ until after a specified period of time. If the consumer cancels or withdraws from the financial product within the specified time, the intermediary must return commission to the product producer.