||Insurance intermediaries such as AA Ireland, must make available on their website, a summary of the details of their remuneration arrangements with insurance underwriters, as outlined within provision 4.58A of the Central Bank of Ireland’s (CBI) September 2019 Addendum to the Consumer Protection Code.
Remuneration is the payment earned by AA Ireland for the work performed on behalf of both the insurance underwriter and the consumer. The amount of remuneration AA Ireland earn is related to the value of the products sold and includes ‘Commission’.
Please note that AA Ireland will always seek to ensure that the insurance products that we offer to you, will be the most suitable product for your needs (having regard to the facts disclosed by you and other relevant facts of which AA Ireland is aware) irrespective of the remuneration arrangements AA Ireland has agreed with its insurance underwriters.
||AA Ireland receives commission from its insurance underwriters, as summarised in the table below. However, AA Ireland regularly discounts its commission to help reduce the price you pay.
– Some examples of commission models AA Ireland operates are as follows:
Single Commission Model: Payment is made to AA Ireland after the sale is completed and is based on a percentage of the premium paid.
– Trail/Renewal Commission Model: In the case of Life Assurance products, further payments are paid throughout the life span of the product.
|Factors which affect the level of commission
||AA Ireland commission rates are displayed in the table section below, as a range, showing the maximum amount which can be received. The level of commission depends on individual circumstances and AA Ireland has the discretion to negotiate with consumers and apply discounts, to help reduce the price for consumers and to enable AA Ireland to offer competitively priced products.
Discounts applied can be found within the customer’s Confirmation of Sale/Renewal pack in the premium breakdown page.
For the Warranty Gold and Warranty Platinum products, the range of commission charged will vary depending on your vehicle engine size, vehicle age and the period of cover.
|Profit Share Arrangements
||In some cases, AA Ireland may be party to a profit-sharing arrangement with an insurance underwriter. For example, if an insurance underwriter earns more premium than it pays out on claims and associated claims expenses, AA Ireland may be entitled to receive a profit share payment.
||Clawback is an obligation on AA Ireland to repay unearned commission. Commission can be paid directly after a policy is purchased but is not deemed to be ‘earned’ until after a specified period of time. If the consumer cancels or withdraws from the policy within the specified time, AA Ireland must return commission to the insurance underwriter.
|Administrative Costs & Other Benefits
||AA Ireland may also be in receipt of payments from insurance underwriters for certain types of administrative costs incurred or other benefits such as: – Assistance with Advertising/Branding – Reimbursement for processing charges that the AA Ireland incurs in respect of policyholders who pay by credit and debit cards.