Non-aligned planning group Synchron will seek to have a level premium set-term basis insurance product built for advisers within the group and has asked a number of insurers to be involved with its development.
Synchron director, Don Trapnell, said the group had developed the idea as part of its response to the Trowbridge Report following a recent trip to the UK by Trapnell and Synchron independent chair, Michael Harrison, to examine its life insurance advice industry after the implementation of the Retail Distribution Review.
Trapnell said that most policies in the UK were written on a level premium, set-term basis and Synchron has designed a product with a similar structure and had put it out to tender to a group of life insurers.
According to Trapnell three insurers were interest in moving from the design to costing phase with a fourth insurer expressing interest in developing a product.
“The structure we have designed provides the ability for the adviser to personalise the product to the specific needs of the client,” Trapnell said.
“The product will have a number of level premiums and will be for a set term. Premium structures at first indication are comparable to current yearly renewable term rates and remuneration will be structured so there is flexibility to enable an adviser to mould the revenue to suit the effort required to secure the business.”
“While we are pleased by recent announcements from AMP and Centrepoint, there are other levers that need to be pulled and addressed. At Synchron we believe it is up to us to not just follow others, but to take on a leadership role. The product structure we have designed goes a long way towards doing just that.”
