Introducing Mansions consumer first pricing philosophy

On Thursday, 2 December 2021 we announced some important changes to the Mansions pricing model. For all new and existing business incepted from 1 March 2022, we will be moving from a ‘traditional’ insurance pricing model to a ‘consumer first’ pricing model.

What is the consumer first pricing model?

The consumer first pricing model is built on five core principles - consumer first, fairness, transparency, efficiency and sustainability.  

The key change in the consumer first model is that premiums will move to reflect net insurance premium only (that is, an insurance manufacturing premium to cover claims, reinsurance, and insurer expenses and profit margin), and will no longer include a broker advice component (i.e. broker commissions).  In line with this, broker remuneration will move from the current model of broker commission and/or broker fees, to a broker customised ‘fee for service’ model only.

We firmly believe the consumer first model will deliver stronger consumer outcomes that are fairer, more transparent, more efficient and more affordable, ultimately encouraging more HNW customers to adopt suitable and bespoke insurance protection.

For you, the consumer first model will also deliver fairer outcomes, support your competitive positioning, and provide you with full empowerment in designing and customising your own income structures.

Importantly, this change is strongly aligned to heightened regulatory and community expectations. The Hayne Royal Commission has solidified the need to do not just what is legal, but to assess everything we do with an additional overlay of consumer fairness. Consumer value and transparency are two other key regulatory themes that this change strongly supports.  

What does this mean for you?

The Mansions product and service proposition remains unchanged, as does the critical role you play in advising Australia’s ever-growing High Net Worth population.

For brokers who currently receive commission, you will need to design and implement a revised client fee structure and communicate the changes and benefits to your clients.

We appreciate this is a fundamental change in approach, but we believe it will drive sustainability and long-term value for all stakeholders.

We look forward to continuing to partner with you to service and grow the High Net Worth Market and close the protection gap for High Net Worth clients in Australia.