Zurich enters initial commission market for corporate pensions

Zurich has started offering initial commission on corporate pensions business for a limited number of high quality company schemes.

The life office says it is running a pilot on a small number of cases to test the market, and will wait until after the FSA statement on the RDR and its application in the workplace, expected in June, before it formalises its strategy on the issue. The move comes as Axa is exiting the initial commission market.
Zurich has also beefed up its corporate pensions team with the appointment of five new specialists and a sales team of three that has set up a new City office.
The City office team comprises Andrew Casey, Matthew Bailey and Craig Spittal, all recruited from Aegon. They will be operating principally on the retail side of the business, but their strong relationships with corporate intermediaries will also be maintained.
The new pensions specialists include Alan Godbeer from L&G, Andy Nash, previously an IFA and formerly with Axa, Dave Lawson from Scottish Widows, Paul Rutland from O&M Systems and Mark Thewlis previously head of pensions sales at Clerical Medical.
Dave Lowe, head of pensions at Zurich says: “This is a pilot at this stage, but not something we are promoting hard. We will decide whether we want to continue to do so in the future. That will in part reflect what the FSA says in its statement due in June about how the RDR will apply in the workplace. There is a reluctance amongst employers to pays fees and this is something we have to understand. We want to support advisers in terms of the way in which commission is paid. But the FSA is keen that commission is not used as an inducement to a sale. We are looking at ways to square off that concern.”