Insurers 'paying too much commission to win pensions business' - papers

Independent analyst Ned Cazalet warned yesterday that several major firms were locked in a costly race to sell group personal pension plans to employers by offering big commissions to the advisers handling the transaction, ahead of rules banning such commission-based sales, according to The Guardian. He warned that such huge commissions would undermine the insurers' ability to make a profit. His view was backed by analysts Bernstein, which said last week that the UK insurance market was "harmed" by its relience on "expensive and disruptive" financial advisers to sell their products. ...