Royal & SunAlliance (R&SA) is set to cut the number of commission tables it uses to calculate broker commissions from 600 to fewer than ten.

The move is intended to streamline the way R&SA deals with its brokers, according to marketing and distribution director Brendan McManus. He added: "This is not intended to reduce the rates we pay to brokers".

McManus explained that R&SA was in the lower quartile regarding commissions it paid to brokers and had no requirement to cut commissions. The move was initiated last summer and approved in January.

It is understood that the company is expected to implement the new tables in May. The programme was being "bench tested" with a few key brokers, added McManus.

He said the move was not certain yet, as it depended on the results of the testing. He added that R&SA explained the strategy to the IIB and Biba.

McManus explained that the large number of products and commissions paid to each broker had built up over the years. "By simplifying the process it will be easier to train staff and communication with brokers will be simpler," he said.

  • More than 60 senior R&SA managers attended a three-day brainstorming session last week to generate new ideas for the coming year. Run by management consultant Cap Gemini Ernst &Young, this year's session - held in Woking - was called Radical Simplification.

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