Advisers Ready for LIF and Will Adopt Fees and Commissions


Around two thirds of advisers have reported themselves as ready to conduct business under the Life Insurance Framework (LIF) changes with a similar number stating they will use a mixture of commissions and fee for service to charge for risk advice.

At the same time advisers are reporting they were receiving moderate to good assistance from industry associations and their licensees in preparing for the LIF according to research conducted by Zurich of 202 advisers.

The research, conducted by Lewers Research and conducted over the phone during October, found that 61.4% of advisers were ‘prepared’ or ‘totally prepared for LIF with 51.5% of advisers stating they have received moderate, good or excellent support from their industry association, with 36.1% claiming they had received poor or no support from the same.

Licensee were said to have provided moderate, good or excellent support for 69.8% of advisers will 24.8 said their licensee had provider poor support or no support in preparing for LIF.

Advisers also stated how they planned on charging for risk advice under the LIF model with 28.2% relying solely on commission, even when the upfront/ongoing model reduces to 60/20.

Around a third of advisers (35.1%) will supplement commissions with a fee but will do so over the three -year transition period while only three per cent said they would charge a fee for service only at any time over the next three years.

Advisers have also focused on improving what they already do, instead of breaking new ground in their preparation for LIF with 28.1% stating they had explored ways to be more efficient and 35.6% looked at better understanding the costs of providing advice.

Re-engineering process and new technology rated under 20% while making staff redundant and selling part or all of a risk book was considered by less than 10 per cent of advisers.

Zurich's Head of Distribution, Retail Life & Investments, Kristine Brooks
Zurich’s Head of Distribution, Retail Life & Investments, Kristine Brooks

Zurich Life and Investments, Head of Distribution, Kristine Brooks, said advisers were examining every part of their business in preparation for LIF.

“This process will not only help advisers ‘future proof’ their practices, it will ultimately allow them to deliver better outcomes for their clients, as they turn to technology to not only drive more efficiency but to also deliver a customer experience which is more engaging, more consistent and more interactive,” Brooks said.

“The more customers understand and interact with the advice they have been given, the more likely they are to be advocates for that advice; that will ultimately be the most exciting outcome of the steps advisers are now taking.”



  1. The one thing you can be certain of is that surveys can be worded and manipulated in such a way as to produce a desired outcome. This article provides no substance or validation. As for “future proof your business” – no such thing when the big end of town can change our businesses as they see fit.

    • Does anyone else see a small panic or push from the other side to make this a reality before more changes water down its benefit to the banks and major insurers ?? Keep fighting there is still 7 months left to get this right There is after all not that much we don’t agree with in the overall proposal ! It’s the bit that hurts us so Badley ( clawbacks and commission reductions) that has the attention of everyone and we all agree that it has no bearing on the advice we give clients This proposed change is overkill !! It’s likevtaking a base ball bat to a mosquito Change is inevitable but do it slowly and with ongoing review and sensibility and we will get the right mix

  2. “Advisers Ready for LIF and Will Adopt Fees and Commissions”
    ” . . .advisers are reporting they were receiving moderate to good assistance from industry associations . . .”
    Words (almost) fail me. Stories like this? They simply have to be kidding but no, they’re not and that’s what makes it sickening. Surveys, yes, well, we’re all intelligent advisers reading this. We all know who benefits from this type of propaganda. It isn’t advisers and it isn’t clients. There’s only one other entity in the circle of life premiums paid by clients . . . .

  3. What a “crock ” this survey has revealed.
    Has anyone heard any life company say..” we will reduce our premiums below the current Nil commission, average 30.0% rebate available to advisers ?

    Zurich of all companies currently pays 121.0% up front plus 11.5% renewal on their risk insurance. Good luck M/s Brookes convincing your advisers that even by reducing the client premium by your maximum discount of 10.0% the adviser’s remuneration is relegated to 82.5% up front plus 6.05% renewal, can charge a fee on top.
    It certainly can’t be more than 10.0% otherwise why provide any discount ?

    So to put it in realistic terms under the present commission arrangement an adviser can give away around 40.0% of his commission and the added value to the client is a whopping ongoing 10.0% discount.
    You’re kidding yourself if you think that any one of your advisers will continue to do business with a mediocre company, that will have their commission discounted in the future by 50.0% (to meet the maximum 60.0% up front) and believes can charge a fee with no discernible cost benefit to the client.
    Of course the 60.0% commission may be reduced to 36.0% in the 23 month of the policy if your company decides to increase their premiums by 10.0%.

    What a great future the life insurance industry can look forward to.

  4. I don’t think we can ever trust any survey results from insurance companies ever again. This one included.

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