Asteron Life executive manager Mark Vilo said while there are still “high levels of emotion” among advisers regarding the LIF, the proposed reforms could enable advisers 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,” Mr Vilo said.
“However, there will be a few leaner years from a cash flow perspective as they adjust to new conditions,” he said.
In an effort to support advisers on the road to reform, Asteron has launched a new tool – the Remuneration Modeller – which will help advisers estimate the effects of the proposed remuneration changes on their business from 1 January 2016.
“Advisers have understandably been concerned about the shift in commission structures as well as clawback provisions and how it will impact their cash flow,” he said.
“In response, we’ve created a tool to help them make informed decisions about their business.
“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,” he said.
The modelling tool asks a range of simple questions about an adviser’s new business, in-force premiums, number of clients, remuneration types and lapse rates.
The Remuneration Modeller then projects revenues over time and allows advisers to assess the impact of different clawback scenarios.
“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,” Mr Vilo said.
Perfectly summarised as usual Nettie – keep up the good work.
Wow Mark you just got a $50,000.00 pay bonus perhaps you could give it to me so I can afford my fees and compliance
This modeller has been around for several years Asteron painted it a different colour and said woo wee here you go advisers . All insurers have been weeing on our back and telling us it is raining. 92 days until armageddon begins cannot wait.
The arrogance and lack of understanding by insurance company execs is astounding. Take into account the level of clawback that advisers will have to wear in the future when customers cancel due to excessing premium rises by insurance companies or for other valid reasons, add lower commissions and no risk business can ever be better off under these reforms. We don’t need a “remuneration modeller” to tell us this!
AIA announced that they intended to employ more expensive BDM’s to “help” advisers in the reforms, another example of the last thing we need!
It’s the excessive business costs by insurance companies (e.g. huge salaries and bonuses to execs and BDM’s) that should be under scrutiny in these reforms.
Also Mark these cartel reforms by the FSC and insurance companies to improve your profits haven’t actually been finalised yet and risk advisers don’t agree with them.
Seriously Mark, How warm of Asteron to help us on the “Road to Reform”… Can you please stop trying to brain wash Advisers with these types of comments and imply that Asteron and other Insurers are going to bend over back wards to help us.after we have been gouged with a 40% reduction in income and a 3 year write back provision.
Are you serious? Suck it up for a few years and it will get better…how about YOU suffer a cut in your income for a few years and wait to see if it gets better. I am sick of these insurers telling us that it will be ok and “helping” with their poxy “modelling tools”.
You win, I wont write Asteron again, ever.
Mark many advisers will vote by writing far less new business post 1/1/16 given the proposed insidious clawback provisions so perhaps you can use your own modeller to work out the various cliff scenarios that Asteron is facing into…
Mark, I thought the issue here was about poor quality of advice? Advisers don’t need a ‘modelling tool’, they need insurers as business partners who demonstrate mutual respect for the benefits we each bring to the consumer. We provide the strategy and advice – and give your product an opportunity in the market place. Would you please explain Asteron’s position on exactly how the LIF ‘reforms’ will benefit the consumer. What is the direct correlation between reduced commission and increased clawback terms and improved quality of advice?
Spoken by a true salaried executive sorry Mark you have no idea what commission advisers go through on top of the huge Dealer group fees we have to pay because all the insurers kicked us to the curb back in 2003, so now you want to take back what you gave us (100% first year commission) so that we could afford our dealergroup fees.
But we have a great future to look forward to don’t we Mark !!!!!!!!!
Thanks Mr Vilo,
I feel so much better now knowing in the long term I will be better off.
Keep up these GEMS of advice and I’ll be sure to rewrite all Asteron policies within the next 3 months.