Advisers are increasingly embracing hybrid commissions, according to AIA Australia.
AIA Australia has reported that “unprecedented numbers” of advisers have signed-up to its new, hybrid commission program. Since its launch in March, more than 800 advisers have registered to join the program.
The program is designed to help advisers manage their cash flow as they transition to a more sustainable, hybrid commission model. AIA Australia says that advisers who take part in the program could increase the value of their business by as much as 71% by the start of the fourth year, and by as much as 93% at the end of year 10.
…we expect to see more advisers transition to hybrid or level commissions
Damien Mu, Acting Chief Executive Officer, AIA Australia, said: “It’s great to see such a positive response to the program since its launch. Research we conducted with advisers highlighted their desire to move to hybrid and level commissions, but also the barriers to doing so. Based on this feedback we developed a program to help address these issues, we expect to see more advisers transition to hybrid or level commissions. We’re confident that this program can help advisers increase the value of their business over time, so the time to sign up is now.”
Meanwhile, AIA Australia’s parent company, AIA Group, has reported record results for the six months ending 31 May 2014.
AIA Group achieved a 23% increase in the value of new business, and an 11% increase in annualised new premium.
Commenting on the results Mr Mu, said: “AIA Group has delivered another strong set of results, and the team at AIA Australia is proud to be a part of this continued success. Our focus on providing exceptional value to our customers and partners, as well as on product innovation with the launch of AIA Vitality, has helped contribute to our strong financial performance.”
AIA’s Group Chief Executive and President, Mark Tucker, added: “The Asia-Pacific region offers one of the most attractive and resilient life insurance markets in the world. A young and upwardly mobile population is driving rapid urbanisation and significant growth in disposable incomes across the region. Combined with low levels of social welfare support and existing private provision, these long-term structural trends provide the foundation for the large and growing need for AIA’s products and services in the region.”
AIA Australia has also released the findings of research it commissioned into rehabilitation services. Click here for more.
