In a statement issued by Asteron, the life insurer said advisers will be able to choose from a “customised” commission rate or a new hybrid rate.
The insurer also said advisers wanting to move to a full fee for service model will be able to select a new wholesale rate with “built in discounts”.
According to the executive manager of Asteron, Mark Vilo, the new commission rates are designed to help advisers with business planning and enable them to tailor pricing to individual clients.
“Advisers are asking for flexibility, so we have developed a first-to-market customised rate that enables them to adjust commission rates and client premiums throughout the life of the policy,” Mr Vilo said.
“They can select a commission of up to 88 per cent in the first year and up to 22 per cent ongoing. Depending on their commission choice, clients may also receive premium discounts of up to 25 per cent.
“This is another way we are supporting advisers to help manage their client relationships in a year that will see significant change for the industry.”
Mr Vilo explained that for advisers interested in moving to a full fee for service business model, the insurer has released a new wholesale rate with a built-in 25 per cent discount and an additional 15 per cent discount for new clients in the first year.
“We have also aligned our new hybrid rate with the proposed 88/22 now so that advisers transitioning away from upfront commissions can set their business up for 1 July when it will come into effect as part of the new regulation,” Mr Vilo said.
