In declaring its support for the retention of risk commissions, AIA Australia has retained the services of former politician and Future of Financial Services reform architect, Bernie Ripoll, to work with the financial services sector in developing long-term policy solutions.
The insurer has recently conducted the first in a series of industry engagements, chaired by Ripoll, which it intends to help initiate and progress thinking on the future of the industry.
One element of the stand-alone insurer’s agenda is the retention of life insurance commissions as a valid remuneration option for advisers.
This agenda was articulated in a message to advisers by AIA Australia and NZ CEO, Damien Mu, in which he declared the insurer’s unequivocal support for the perpetuation of risk commissions.
Mu told advisers in April that his company was considering the recommendations stemming from the Banking Royal Commission and that there was a clear need to develop a strong and united industry voice to advocate for:
- The quality of risk advice
- Better value and choice for consumers
- The importance of appropriate adviser remuneration, including supporting the existing legislative framework for commissions and remuneration
“As an industry, we need to continue to build awareness amongst policy makers, the media and consumers of the value of risk advice…,” said Mu.
He continued, “The action we will be taking will centre on engaging directly with key stakeholders, advocacy, and carrying out research to support the future sustainability of the industry.
“We will also then arrange a series of events that will elevate the issues of adviser remuneration and the importance of supporting the commission framework and ensuring risk advice remains accessible for as many Australians as possible.”
Mu added that the value of advice and advisers will be a priority issue for AIA Australia in 2019: “We want to deepen our partnership with you, so that we can collectively advocate for the advice industry,” he said.