Asteron Life has moved to help advisers deal with the new Life Insurance Framework by developing a new framework of commission options.
The company said the new framework would allow advisers to choose from a customised commission rate or a new hybrid rate, while those looking to move to a full fee for service model, could move to a new wholesale rate with built in discounts.
Announcing the initiative, Asteron Life executive manager, Mark Vilo, said the new approach to commissions would help advisers with business planning and enable them to tailor pricing for individual clients.
“Advisers are asking for flexibility, so we have developed a first-to-market customised rate that enables them to adjust commission rates and client premiums throughout the life of the policy,” he said. “They can select a commission of up to 88 per cent in the first year and up to 22 per cent ongoing.”
Vilo said that, depending on the adviser’s commission choice, clients might also receive premium discounts of up to 25 per cent.
“This is another way we are supporting advisers to help manage their client relationships in a year that will see significant change for the industry,” he said.
Vilo claimed that the further options including a new ‘no commission’ wholesale rate and the early adoption of the 88 per cent year one and 22 per cent ongoing hybrid rate provided greater choice for advisers.
“For those advisers interested in moving to a full fee for service business model, we’ve released a new wholesale rate with a built in 25 per cent discount and an additional 15 per cent for new clients in the first year.
“We have also aligned our new hybrid rate with the proposed 88/22 now so that advisers transitioning away from upfront commissions can set their business up for 1 July when it will come into effect as part of the new regulation,” Vilo said.
