Prudential Ceases Endowment Compensation Payments to Agencies
Insurance company will pay compensation direct to customers after 'alarm' over commission levels
29th April 2005
Insurer Prudential is to stop making endowment compensation payments to go-betweens, after expressing 'alarm' over the level of commission these agencies can charge.
The companies typically charge around 25% for handling a client's endowment compensation claim, but Prudential says it has found cases where the figure rises to a whopping 50%.
The company stresses that it will still deal with agencies and that it will still be paying compensation when due, but will pay direct to the customer rather than the agency. The agency's commission will then be a matter between them and the customer.
Read More: BBC Your Money
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