More than 1,000 advisers have signed on to life insurer AIA's remuneration program, which is aimed at helping advisers transition away from high upfront commissions to a hybrid model.
AIA said 1,168 advisers have joined the program in the two years since its inception, which has resulted in their experiencing an improvement in the long-term recurring revenue of their business.
The life insurer added that, based on its calculations, advisers who take part in the program could increase the value of their business by as much as 71 per cent in four years and by as much as 93 per cent in 10 years.
AIA Australia chief retail insurance officer Pina Sciarrone said the program's popularity is a "testament to advisers' willingness to transition to a hybrid commission structure" but with their requiring support to do so.
"We developed our transition to hybrid program in response to feedback from advisers, and it is great that the program has been received so well," Ms Sciarrone said.
David Lane, of Affinia-aligned practice Lane Financial, said signing on to the program has allowed him to grow his business "sustainably".
"When you consider what is going to deliver long-term sustainable income for the business in future, a hybrid commission structure makes sense," Mr Lane said.
"This type of program is a great way to make the transition, so I'm not surprised it's been so popular with other advisers."
The number of Australians entering retirement has presented an enormous opportunity for financial advisers according to an investment specialist. ...
Sally Loane is stepping down as the CEO of the Financial Services Council after seven years at its helm. ...
Macquarie Group's asset management division is plotting its US expansion. ...
Get notifications in real time and stay up to date with content that matters to you.
