LV= brokers invited to transfer to Allianz will be treated as any other new business
Commission offered to brokers transferring from LV= to Allianz on as part of a strategic partnership between the two insurers will be decided by Allianz.
This is despite the policies set to be offered to the “vast majority” of brokers being materially the same.
The first set of invitations to LV= commercial lines brokers to switch to Allianz will take place on Monday, with the business scheduled to be moved over on 20 September.
Allianz UK chief executive Jon Dye explained that deciding on commission levels for the 167 new brokers that will be invited to transfer will be calculated like it would for any new business.
He said: “Our discussions with brokers on commission are ongoing all the time. That’s not unique to LV= transfers, that’s just the nature of trading in the market.
“When we’re looking at the commissions we pay, we’re looking at what’s the value being added by the broker to this particular relationship or this particular piece of business.”
Allianz earlier this year took up some of the business vacated from GRP’s split with Aviva. This was reportedly over GRP asking for greater levels of commission.
But Dye said that “commission level is something we need to manage all the time”.
Dye explained that any LV= broker looking to negotiate commission would be analysed in the same way as any existing broker.
He said: “The offer will be the offer that we would ordinarily make on that class of business to a broker.
“Our willingness to negotiate around that will depend very much on the nature of the relationship, the nature of the business and all the rest of it.
And he added: “They are brokers and they can absolutely take the business elsewhere if they choose to do so.”
The majority brokers invited to switch from LV= to Allianz are same policies with the same terms and conditions.
Dye said that any material differences would be flagged up in the quote waiting for them when they sign into the e-trading platform.
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