This review is being undertaken in light of the current market conditions where a number of network principals are entering into single-tie agreements for general insurance, consolidating or pulling out their support to the intermediary market. In some scenarios this has led to situations where contractually the network members are no longer able to access S&P’s products. As a result of the review, S&P will take steps to revise its position on contractual agreements with non-supporting networks. However, S&P will continue to pay appointed representatives (AR) commissions on S&P policies where these ARs are members of the networks under review and where the business continues to renew.
These payments are made purely on a goodwill basis as S&P are not contractually obliged to continue to pay this trail commission to an AR when their network’s agreement with S&P is no longer active.
By retaining payments to the individual intermediaries S&P believe they are providing fair treatment to AR’s affected by the decision of their network and it demonstrates S&P’s continued support and loyalty to the financial intermediary marketplace in which they have been supporting the individual intermediary for the past 25 years.
