how low can this go?, page-162

First 162 Last

Share
Profile

Follow
Just_a_guy

3,322 Posts.

103

13/09/18

14:26

Post #: 35578214
Share

Originally posted by ReXXar ↑

I'm not sure if you understand what TC is, they're not commission. TC is for the lifetime of the product, a perpetual revenue share of the policy, naturally the premium increase in value over time as people get older, unless the policy is terminated. When Freedom sells a product, it also gets one-time up-front commission which covers its costs of acquiring that policy. In FY18 they increased TC by $30m and got an additional $30m commission for doing so.

I'm going to answer your question with an excellent blog from Forager's, basically when it comes to difficult decisions people choose the default option, for example in a questionnaire whether people would like to participate in organ donation, the majority choose the default option regardless whether its "opt-in" or "opt-out". Take AMP, they had the worst year of PR in its history, yet its market share for superannuation declined only 0.4% from 25.9% to 25.4%. Its not people don't care about the Royal Commission, they do but most people just don't do anything about it. So do I think they will get 50% of their TC, imo yes.

Expand

Sorry, my point was that policy cancellation would be high reducing the value of the previously sold policies for freedom.
I read that about amp, and found it slightly surprising at the time although I think freedom is in a very different position with most policies sold directly not through a ‘trusted’ adviser.

FIG Price at posting: 11.5¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

SHN

Chimeric clocks $4.17M R&D tax rebate from Canberra

OCN

Southern Cross Gold zooms in on 9 new high-grade zones above 20g/t at Golden Dyke

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Watchdog takes Webjet to court over alleged 'false' flight prices with hidden fees

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

PME

Pro Medicus signs landmark $330M deal to roll out imaging platform in US hospitals

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MTM

Australian Rare Earths bullish on early-stage uranium potential at Overland, SA

Chaos reigns markets – so let's take stock of where we're at ahead of December

There are more pages in this discussion • 315 more messages in this thread...

First 162 Last

Add FIG (ASX) to my watchlist

how low can this go?, page-162

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Chimeric clocks $4.17M R&D tax rebate from Canberra

Southern Cross Gold zooms in on 9 new high-grade zones above 20g/t at Golden Dyke

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Watchdog takes Webjet to court over alleged 'false' flight prices with hidden fees

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pro Medicus signs landmark $330M deal to roll out imaging platform in US hospitals

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Australian Rare Earths bullish on early-stage uranium potential at Overland, SA

Chaos reigns markets – so let's take stock of where we're at ahead of December