On 15 December 2017 certain amendments to the Long-term Insurance Regulations were published in the Government Gazette, one of which was the table for the payment of commission in respect of a group scheme or fund policy.
As from 1 January 2018 new commission scales, in terms of the Long-term Insurance Regulations, indicates an increase in the maximum commission, as a percentage of the annual premium that an insurer may pay. Sanlam Employee Benefits: Group Risk accommodates the change as follows:
- For new clients: The premium rate will be based on the new commission scale.
- For existing clients: The new commission scale will be implemented at the next rate revision.
With the rate revision, communication will be provided to illustrate the changes to all parties involved.
Should an intermediary, however want the new commission scale to be applied for an existing client, before the next rate revision of the scheme, an amendment quote can be requested. Before being applied, the communication provided must be approved (i.e. signed-off) by the client (employer/fund) and returned to Sanlam for implementation.