In what it positions as a journey on the road to life insurance reform, Asteron Life has launched a new Remuneration Modeller service for advisers.
The specialist insurer says this service will help advisers estimate the impact of proposed Life Insurance Framework remuneration changes set to take effect from 1 January 2016.
Asteron Life Executive Manager, Mark Vilo, said the Remuneration Modeller was designed to address some of the uncertainty about how life insurance reforms would impact an adviser’s bottom line”
“Advisers have understandably been concerned about the shift in commission structures as well as clawback provisions and how it will impact their cash flow. In response, we’ve created a tool to help them make informed decisions about their business,” he said.
Our modelling shows that in many cases advisers will be paid more total commission than currently
“Our modelling shows that in many cases advisers will be paid more total commission than currently, but there will be some challenges as they make the move away from higher upfront commissions and allow for new clawback conditions,” added Mr Vilo.
In its release, Asteron Lufe notes its modelling tool asks a range of simple questions about an adviser’s new business, in-force premiums, number of clients, remuneration types and lapse rates. It then projects revenues over time and allows advisers to assess the impact of different clawback scenarios.
Mr Vilo said there were still high levels of emotion among advisers but the proposed reform could enable them to increase their business’ value.
“Advisers who see life risk as a long-term business proposition will benefit from reform which can increase the value of their book over time. However, there will be a few leaner years from a cash flow perspective as they adjust to new conditions,” he said.
Click here to access the Asteron Life Remuneration Modeller
Mr Vilo, you can spread as much manure as you like over unfertile/barren land and you still won’t grow anything.
You talk about the long term business proposition.
Let’s see how that works !
Companies like yours and others have increase premiums on legacy products that are in competition with your current lesser product offerings, to a level that become unsustainable to the client.
For their loyalty you don’t want these clients on your books despite the fact that most have pretty clean claims records.
How is that the basis of building a long term business proposition ?
The likes of you don’t value what you’ve got.
When life insurance companies decide to increase premiums between 50.0% – 85.0% just because they can, how does that work at building a sustainable long term business proposition?
The loyal client for us says “can you please put us somewhere else !!”
But hang on, you and your cronies (FSC) want to introduce a 3 year “clawback” provision.
I’ve experienced these things that you say will build a sustainable business from your company and others in the past ….. but for whom ?
It certainly isn’t for the adviser !!
Keep spreading the “manure” as you have…. only one of us will starve to death if you think it will grow anything to feed you.
Mark many advisers will vote by writing far less new business post 1/1/16 given the proposed insidious clawback provisions so perhaps you can use your own modeller to work out the various cliff scenarios that Asteron is facing into…
Why would anyone support or give credence to anything Mark vilo says.
The saying is …. ” if you torture statistics long enough…. they’ll tell you anything you want to hear !!”.
Your modeling is not only flawed but is self serving at the very least.
If you think this rubbish/propaganda you’re putting out has any validity, try living off 50.0% of what you currently earn with the prospect that within 3 years you may have to pay back all or some of the remaining 50.0%.
Mr Vilo if any of what you say has legs then why don’t you give up your present position and become an adviser.
Only then will you get a taste of commercial reality and walk in our shoes.
Life companies have survived and in fact created the present system we all work under as small free enterprise businesses.
The only reason for change is that you and others in the FSC want to make someone else responsible for the bad behaviour endorsed and encouraged by all of you.
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