Insurer AIA Australia has launched a program to assist risk advisers move to hybrid or level commission remuneration models, anticipating long-term business benefits.
The ‘Transition to Hybrid’ program is “designed to help advisers manage their cash flow as they move to a hybrid commission model”, according to a statement from the insurer issued yesterday.
The statement added that hybrid and level commission structures can “provide greater value than upfront structures over time” and may provide an “opportunity to increase the value of their new business”.
Under the terms of the program, participating advisers can receive “an extra 10 per cent year 1 commission on all new hybrid/level policies submitted in year 1 of the program, 7.5 per cent extra Year 1 commission for new Hybrid/Level policies submitted in year 2 of the program; and 5 per cent for those submitted in year 3 of the program”.
AIA Australia general manager, life insurance, Damien Mu said the program will have long-term business benefits for participants.
“Many advisers have told us that they want to be less dependent on up front revenues, and that they want to grow their recurring revenue,” Mr Mu said.
“Through this program, we believe we can assist advisers in managing their cash flow while transitioning them onto the hybrid commission model, which can increase the value of their business over the long run.”
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