February 6, 2018
ClearView has launched a new online payment facility that will allow financial advisers to charge and process flat fees for life insurance advice.
Advisers will be able to access the new Advice Implementation Fee (AIF) facility via the ClearView website and apply fees to life insurance advice or use a combination of fees and commissions through the facility.
CleaView stated the purpose of the AIF was to help advisers develop alternative remuneration structures under the Life Insurance Framework.
This included allowing advisers to supplement reduced commission payments in the first year of the LIF regime, exchanging renewal commissions and premium discounts for an upfront fee, and charging an advice fee that was not dependent on the client proceeding with a life insurance application.
ClearView General Manager of Distribution, Christopher Blaxland-Walker said the facility would allow advisers to take action to prevent a decline in cash-flow but would require them to move into charging fees for insurance advice.
“Advisers need to rethink their commission and fee structures, and start asking to be paid a reasonable fee for the vital work they do and the value they add. This is a new and uncomfortable concept for many but it has the potential to transform their business,” Blaxland-Walker said.
“The right model will vary from adviser to adviser depending on a multitude of factors including their overall business model, their client demographic and target market and the level of service they provide,” he added.
“Our AIF facility is intended to give advisers more choices and the opportunity to evolve their pricing and proposition at their own pace,” Blaxland-Walker said.
The launch of the payment facility follows other recent service enhancement from ClearView which recently upgraded its electronic quoting and application system and the implementation of tele-interviewing and tele-underwriting (see: ClearView Revamps Quote and Application Platform).