Commission guide and Distribution Agreement changes.

FAQs.

• Why are you changing commission rates?

  Why are you changing commission rates?

  You’ve told us that over the past 2-years, we haven’t just gotten back in the game—we’ve started to lead. From new propositions, more competitive pricing, and solutions, to making it easier to do business with us, and deepening engagement, we’ve worked hard to earn your trust and confidence. And you’ve told us that it’s working.

  And we’re not done yet. We’re restless to do more – and we’re committed to continuing to improve, evolve, and deliver even better outcomes for you and your customers.

  As part of that journey, we’re making some important changes that will take effect from 1-Sept 2025:

  • Change to upfront commission – Advisers will move to a New Business Commission rate of 230%. This is among still the best New Business commission rates in the market.¹
  • Change to servicing commission – Advisers will be on 7.5% for new business submitted after the effective date² – there will be no change for servicing commission on existing business submitted before that date.
  • These changes come into effect from 1-Sept 2025.

  ¹ This claim is based on a Fidelity Life internal comparison of publicly available commission structures across key competitors, compiled and reviewed in July 2025 using the most up-to-date market intelligence available at that time.

  ² Some legacy system policies may retain existing rates due to technical constraints.

• Can I still spread commission rates?

  Yes. We are not making any alterations here. It continues to be capped at 50%. See the Commission guide for more information.

• Does this change on servicing commission impact my existing book?

  Advisers will be on 7.5% for new business submitted after the effective date – there will be no change for servicing commission on existing business submitted before that date. 

• Why is Fidelity Life reducing servicing commission?

  This change reflects our commitment to being a sustainable NZ life insurer. We believe our servicing commission is fair, and part of an approach that supports long-term customer outcomes.

• When are changes effective from?

  The changes to New Business and servicing commission come into effect from 1-Sept 2025. 

• What happens to Adviser commission rate on Level premium business – is this changing?

  The rate for Level will be 80% of 230% across the board. Please refer to the Commission guide for more information.

• What happens to my pipeline business?

  Submissions before the effective date of 1-Sept 2025 will be processed at the commission rate prevailing at the time the application is made, regardless of the issuance date of the policy. Submissions made from 1-Sept 2025 onwards will be subject to the new commission rates.

• What happens on a policy alteration?

  The same applies. Business written before 1-Sept 2025– will be paid 10% servicing commission rate. Business alterations submitted after this date – will be on the new 7.5% rate.*

  Note that in some systems, if the alteration results in an increase in premium and that increase is commissionable (e.g. a change from Non-Smoker to Smoker), then additional NB commission will be generated for the increased premium based on the original upfront commission rate at the time of submission.

  *Some legacy system policies may retain existing rates due to technical constraints.

• How will these changes to the Distribution Agreement affect group business?

  We are not making any changes to the Group Commission Schedule, however as there are new contract terms for the underlying Distribution Agreement, the Group Variation Agreement also needs to be updated to reflect the new Distribution Agreement.

  For those providing group distribution services, an updated Group Variation Agreement will be sent separately.