Question regarding MPPI commission

misschicken

How does the commission structure work if a bank sold you the policy? Is it as a percentage or is it based on set amounts eg. if the policy is for an amount between £1-499 per month compensation the commission is x amount, then £500-999 is the commission would be higher because the premiums would be higher etc. Does that make any sense at all?:o

di3004

Hi there bumping this up for you, for someone that may know, good luck.;)

roonaldo

Yes the commision on a monthly would be a tiny percentage of the monthly premium. But this is nothing to do with the consumer.

magpiecottage

roonaldo wrote: »

Yes the commision on a monthly would be a tiny percentage of the monthly premium. But this is nothing to do with the consumer.

Quite so - the question is what, if anything, has the consumer lost if, and only if, the policy was missold.

dunstonh

How does the commission structure work if a bank sold you the policy? Is it as a percentage or is it based on set amounts eg. if the policy is for an amount between £1-499 per month compensation the commission is x amount, then £500-999 is the commission would be higher because the premiums would be higher etc. Does that make any sense at all?

Commission is largely irrelevant in banks as the staff don't get paid it. The bank does. Don't get me wrong. it is relevant in product pricing. I just mean that it is not relevant to the individual. The higher the premium, the higher the commission as it is percentage based of each premium paid.

It is as relevant to you as what Tesco make on a tin of baked beans. You pay the price on the tin. It doesnt matter if it makes them 1% or 20%.