Asteron Life launches remuneration modeller for risk advisers

Asteron Life has launched a new tool to help advisers estimate the impact the proposed life insurance reforms could have on their businesses.

The Remuneration Modeller will ask a range of questions about an adviser's new business, in-force premiums, number of clients, remuneration types and lapse rates, according to a statement by Asteron Life.

It will then project revenues over time and allow advisers to assess the impact of different clawback scenarios, the statement said. The tool is available at asteronlife.com.au/remuneration-modeller.

"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," said Asteron Life executive manager Mark Vilo.

"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."

Mr Vilo added that there were still "high levels of emotion" among advisers but the proposed reforms 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.

"We have every reason to feel optimistic about our industry's future. The Remuneration Modeller is just one way that Asteron Life is supporting the Road to Reform and helping advisers to make the most of opportunities."

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