In the wake of the LIF reforms, diversified financial services firm Clearview has launched an online payment facility for life insurance advice.
The payment feature, named the Advice Implementation Fee (AIF) facility, is designed to help advisers charge a fee agreed to by the client, according to a statement.
The facility is accessible through the ClearView website and was created in the wake of challenges advisers faced in adjusting to the Life Insurance Framework (LIF).
The AIF facility aims to help advisers develop alternate remuneration models, such as “supplementing reduced year one life insurance commission payments under LIF, exchanging renewal commission and premium discounts for an upfront fee, and charging an advice fee irrespective of whether a client ultimately proceeds with a life insurance application”, the statement said.
Commenting on the launch, ClearView general manager of distribution Christopher Blaxland-Walker said many advisers were still figuring out how to handle obstacles presented by LIF and which remuneration model would be best for them.
“The right model will vary from adviser to adviser depending on a multitude of factors including their overall business model, their client demographic and target market and the level of service they provide,” he said.
The website feature would be made available to all advisers and offer advisers more choice and the opportunity to adjust their price and proposition in their own time.
He added that the AIF facility would be a “much-needed and valuable tool” for advisers who would see their cash flow decrease under LIF.
“Advisers need to rethink their commission and fee structures, and start asking to be paid a reasonable fee for the vital work they do and the value they add,” Mr Blaxland-Walker said.
“This is a new and uncomfortable concept for many but it has the potential to transform their business.”
He also said that while a number of licensees already facilitated the payment of fees for advice, many in the boutique space still did not have a “practical solution”.
“Our facility is available to all advisers, under a single adviser login alongside our quote and application tools,” Mr Blaxland-Walker said.
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