{"id":77846,"date":"2025-07-01T00:48:05","date_gmt":"2025-06-30T13:48:05","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=77846"},"modified":"2025-07-08T18:23:45","modified_gmt":"2025-07-08T07:23:45","slug":"change-lif-commission-structure-your-say","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2025\/07\/01\/change-lif-commission-structure-your-say\/","title":{"rendered":"Change LIF Commission Structure? Your Say"},"content":{"rendered":"<div id=\"polls-348\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Do you support a revised LIF remuneration model which includes a minimum commission payment designed to allow more risk advice to be delivered to Australians on low-middle incomes?<\/strong><\/div><div id=\"polls-348-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Yes <small>(84%)<\/small><div class=\"pollbar\" style=\"width: 84%\" title=\"Yes (84% | 198 Votes)\"><\/div><\/li>\n\t\t<li>No <small>(9%)<\/small><div class=\"pollbar\" style=\"width: 9%\" title=\"No (9% | 21 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(7%)<\/small><div class=\"pollbar\" style=\"width: 7%\" title=\"Not sure (7% | 17 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_348_nonce\" name=\"wp-polls-nonce\" value=\"148e29b302\" \/>\n<\/div>\n\n<p>Our latest poll seeks your view on the change to the LIF commission structure proposed by <strong>John Trowbridge<\/strong>.<\/p>\n<p>As we&#8217;ve reported this week, the Independent Chair of the 2015 Life Insurance and Advice Working Group has called for a minimum commission payment to underpin advice on smaller premium life insurance business, mostly provided to consumers earning low-middle incomes (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2025\/06\/30\/renewed-call-to-review-lif-commission-structure-trowbridge\/\" target=\"_blank\" rel=\"noopener\">Renewed Call to Review LIF Commission Structure<\/a>).<\/p>\n<p>The intention of this poll is to seek your opinion on whether you agree with the principle of Trowbridge&#8217;s proposition, namely a minimum commission being paid to advisers regardless of the client&#8217;s annual premium. The question of how much that minimum commission payment should be, and to what minimum premium level it should apply are questions for another conversation.<\/p>\n<blockquote><p>&#8230;it is simply uneconomical for any financial adviser remunerated via commission to advise younger and\/or lower-income Australians<\/p><\/blockquote>\n<p>Trowbridge&#8217;s renewed call to do something about the LIF commission caps in their current format is informed to a large extent by the fact that it is simply uneconomical for any financial adviser remunerated via commission to advise younger and\/or lower-income Australians where their annual premium level won&#8217;t generate sufficient commission income.<\/p>\n<blockquote><p>&#8230;the cost to serve, combined with the 60\/20 commission caps is a sum which doesn&#8217;t add up<\/p><\/blockquote>\n<p>In other words, the cost to serve, combined with the 60\/20 commission caps is a sum which doesn&#8217;t add up (it never has), and where lower-income Australians have become the victims of this equation.<\/p>\n<p>So, what should be done about it? FAAA GM Policy, Advocacy and Standards,\u00a0<strong>Phil Anderson<\/strong>, is advocating for an increase to 80\/20 (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2025\/06\/24\/anderson-calls-for-80-20\/\" target=\"_blank\" rel=\"noopener\">Anderson Calls for 80\/20<\/a>), and we&#8217;ve run previous polls seeking your opinion on this proposal (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2023\/01\/31\/poll-result-60-20-not-enough\/\" target=\"_blank\" rel=\"noopener\">Poll Result &#8211; 60\/20 Not Enough<\/a>). Trowbridge, on the other hand, is proposing an alternative structure.<\/p>\n<p>Both these proposed solutions would deliver a more attractive commercial proposition for advisers and advice practices, while at the same time extend the reach of much-needed life insurance solutions to younger and lower-income Aussies who are currently &#8216;commercially unviable&#8217; clients for advisers.<\/p>\n<p>Once again, this poll is seeking your opinion on the principle of Trowbridge&#8217;s proposal, rather than the numbers at which the minimum commission payment should kick-in. That will form part of future questions we&#8217;ll be asking you.<\/p>\n<p>Tell us what you think and we&#8217;ll come back to you next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll seeks your view on the change to the LIF commission structure proposed by John Trowbridge. As we&#8217;ve reported this week, the Independent Chair of the 2015 Life Insurance and Advice Working Group has called for a minimum commission payment to underpin advice on smaller premium life insurance business, mostly provided to consumers [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":77853,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-77846","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/77846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=77846"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/77846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/77853"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=77846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=77846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=77846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}