Getting on an APL costs $150 to $200 per adviser

A Parliamentary Committee has been told life insurance companies pay between $150 to $200 per adviser a year to support their products on the approved product lists (APLs) of financial planning licensees.

Zurich Financial Services Australia has told the Parliamentary Joint Committee (PJC) on Corporations and Financial Services that it believes the $150 to $200 per adviser cost is worth it in circumstances where it is one or three life insurers in Australia that do not own distribution channels.

In doing so, the insurance company sought to argue that gaining a position on an APL and the payment of sponsorships were “two independent concepts”.

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Members of the Parliamentary Committee have queried Zurich and other insurers about whether so-called “educational support payments” are just shelf space fees by another name.

However, Zurich said that an APL position in itself did not guarantee sales support from a license and that any support was based on merit, “meaning an insurer must continue to ensure their overall offering remains compelling”.

Zurich said that, similarly, almost all APLs have “robust ‘off-APL’ processes in place, allowing their advisers to place business with other insurers where it is deemed to be in the best interests of their clients.

On the question of “educational support payments”, Zurich described them as an “enabler of detailed product knowledge among advisers”.

“The provision of such education on an ongoing basis to advisers, especially across a national panel, can be a resource intensive exercise, and to this end some (not all) licensees invite insurers to make a financial contribution to education and training programs,” it said.

“The financial support for such education and training programs is generally described as a ‘sponsorship payment’,” Zurich said, adding that they were “always flat fee arrangements”.




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What education payments? I have never seen any of these payments, are they handed out at the end of conferences or something? This makes it look like we get all these payments , and we don't, we just get what we earn from the clients. Zurich is right when they are being on the APL does not guarantee business, its very competitive out there and only companies that provide excellent client service and top class products will get the new business.

Who do you think pays for your conferences ? The Sponsorship does those lovely golf days and PD days.

David im not sure who you work for , but golf days dont happen where I am, havent for years, we dont even see BDMS much at all where I am. With the PD days if I can afford to take a day off, I need to pay to get there and back, pay for food as its always these sandwiches with alfalfa sprouts and turkey with cranberry which ok the product providers may pay for, but I dont eat them so it dosent count, so it can actually cost me money to go to these things..

TJ, Great comment, maybe you have been waiting at the wrong door, or in the wrong line. I am sure the line must have only been for the specialists groups

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