The company announced today that it would be reducing upfront commissions on new life insurance products, capping year one commissions to 80 per cent and a 20 per cent annual commission payment.
As well, it said AMP advisers would have access to the one year commission only once every five years per policy, and that it’s licensees’ approved product lists would move to a similar remuneration structure with all life insurance products complying with the new model and the five year rule.
Confirming the changes today, AMP chief executive, Craig Meller, said it was clear the life insurance industry needed to reform in order to help restore customer confidence.
“We have consulted with adviser associations to develop these reforms — they also recognise that change is required to build trust and secure long-term benefits for our customers,” he said.
Meller said AMP would support advisers through the transition and was committed to developing technology and systems which allowed advice to be delivered more efficiently.”
