How does initio get paid?
On the questions of: how does Initio make money? Does Initio charge fees?
Key takeaways
- Initio is an underwriting agency of IAG New Zealand Limited, a registered insurer.
- Initio is authorised by IAG to arrange, manage and administer insurance policies, and to manage and pay claims on IAG’s behalf.
- Initio is a licensed Financial Advice Provider and can provide regulated insurance advice through its registered financial advisers.
- Initio receives commission when a policy is purchased and renewed.
- Initio also charges a transaction and platform fee, which is disclosed before you purchase your policy.
- Details of our commission, fees and remuneration are available in our Disclosure Statement.
It is first important to know what type of business initio is:
Initio is an Underwriting Agency of registered insurer IAG. Initio is not an insurance company in its own right. This means that initio has delegated authority from the insurer to establish and manage insurance for houses, contents and cars. In addition, Initio has authority to pay claims on behalf of the insurer.
Initio is a licensed Financial Advice Provider under the Financial Markets Authority of New Zealand. Initio have staff who are Registered Financial Advisors, which enables initio to provide customers with insurance advice specific to their situation.
On the sale of an insurance policy, including its subsequent renewal, initio is remunerated by commission and fees. The commission is a payment that recognises the cost of delivering such functions, administration, and services that would otherwise be a cost to the insurer, and the fee is a transaction and platform fee designed to recover costs associated with transaction processing including bank and payment provider processing costs, credit card merchant charges, and obtaining property risk and vehicle data, and regulated financial advice. For details of charges and remuneration see our disclosure statement, and/or refer to the quote and invoice when transacting with us.
Frequently asked questions
Is initio an insurance provider?
Yes. initio is an insurance provider that distributes and manages insurance products underwritten by IAG New Zealand Limited. IAG is the registered insurer, while initio is authorised to administer policies and manage claims on IAG’s behalf.
Where can I find information about initio’s fees and commission?
Details about our commission, remuneration and fees are available in our Disclosure Statement. Any transaction and platform fees that apply will also be shown before you purchase your policy.
Why does initio receive commission?
Like many insurance providers, initio receives commission from the insurer when a policy is purchased or renewed. This helps cover the cost of administering policies, supporting customers and providing insurance services.
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Written by Megan Fisher, Head of Marketing at initio.
Megan has been with initio since 2022 and has over 20 years’ experience in marketing and product strategy. She works closely with initio’s claims and customer experience teams, giving her a first-hand view of how insurance works when customers need it most.