Asteron Life’s ‘2 for 10’ commission offer is intended by the insurer to contribute to the development of a more sustainable remuneration model and long term business value for advisers.
Launched into the market last week, the offer will deliver an additional 10% commission in the first year to advisers who write new business using Asteron Life’s ‘Complete’ product range, and who also:
- Utilise Asteron Life’s e-app process, and
- Choose to be remunerated via Asteron’s Hybrid or Stepped Hybrid commission structure
I have strong support for the need to change to a different remuneration model
In launching this offer, which extends for new business between 11 November 2013 and 30 June 2014, Asteron Life’s Executive GM, Adviser Distribution, Jordan Hawke, stressed the importance of the initiative in terms of its connection to the current sustainability debate: “I have personally spoken to many advisers about the future of our industry and I have strong support for the need to change to a different remuneration model. While ‘2 for 10’ may be seen as a short term tactical solution, it responds to the challenges given to me by advisers'” he said.
In a release outlining the offer, the equation for advisers contemplating this option is:
- If Hybrid commission is selected, adviser commission in year one will increase from 72.5 per cent to 82.5 per cent (incl. GST)
- If the adviser selects Asteron’s Stepped Hybrid commission option, year one commission will increase from 90 per cent to 100 per cent (incl. GST)
“We all recognise that consumers who receive advice from an adviser have better financial outcomes, and it is important that advisers get paid for this advice. ‘2 for 10’ is designed to support advisers that want to get efficiency in their business through e-apps, and shift to an alternative remuneration model,” said Mr Hawke.
The insurer notes that if advisers elect to be paid by either upfront or level commissions, they will not be eligible for this offer.
Advisers can click here to access Mr Hawke’s November video blog, in which he outlines the 2 for 10 offer and its rationale.
Personally I don’t have an issue with how a client elects to pay an adviser, either by higher premiums or fee or combination. The issue for me, a Fee for Service adviser, is the lack of correctly priced nil commission products ! Sooner or later a company will start producing correctly priced nil commission products and advisers will have to tell the clients that it is them who are paying the adviser not the life company ! we will see change when this happens !
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