Net commission product

FWU net commission products do not contain any payments for the brokerage service. The brokerage fee for each product is specified under the licensing agreement and stipulated in a separate agreement made between the client and the licensed partner - separate from the insurance contract - when the product is sold. The client usually undertakes to pay the agreed fee in equal instalments over a period of 60 months. This concept offers decisive benefits both for clients and for licensed partners and their brokers, as compared with traditional tariff calculations in which the brokerage fee is not revealed.

The client is not left in the dark as to the level of payment for the brokerage service. These costs become completely transparent and raises the clients' demands on the quality of the brokerage services. The legality of this process has been validated by numerous court judgements and the Federal Supervisory Office for Insurance has also declared in VerBAV 9/96 that a separate brokerage fee is permissible provided the tariffs are free of any brokerage costs and do not have any commission fees factored into them.

As far as forms are concerned, the net commission concept is implemented as a separate insurance application and brokerage fee agreement.