An online insurance service could help charities secure for themselves the 20% commission usually paid to a broker.
Claiming to be the first 'insurance fundraiser' of its kind, the scheme has been developed by charity specialist Charity Business in partnership with Aisa Direct, an Independent Financial Adviser regulated and authorised by the Financial Services Authority.
The online service provides discounted quotes for individual life, critical illness and income protection cover from leading insurance providers. Because the service is online the need for a third party broker is minimised, which enables a proportion of the commission to be redirected to charities. Depending on the type of policy, charities could earn "from £50 to £1,000 each time."
"Life insurance is a fact of life," says Mark Freeman, chief executive of Charity Business. "But a lot of people are bothered by the amount that's siphoned off in commission to brokers. With this new service everybody wins - discounted rates mean customers pay less for their insurance while their favourite charity receives money at no cost to themselves or anyone else."
Online affinity programmes have been available for many years. Amazon.com is one of the most popular, and was launched back in 1997. Participating charities and organisations can earn between 5 and 15% of each book sold via their Web site.