AIA Australia launches new adviser pay model
AIA Australia has released a new commission payment model for advisers, which it says could almost double the value of advisers’ business over 10 years.
Similar to the model launched by Asteron Life late last year, AIA’s Transition to Hybrid program offers advisers the chance to swap upfront commissions for staged hybrid payments in a move it says will help them to better control their cash flow.
Under the model, due to be launched on 17 March, advisers could receive an extra 10 per cent on year one commissions on hybrid policies in their first year, and 7.5 per cent on year one commissions the following year. The first year upfront commission could add up to more than 90 per cent, the insurer said.
AIA predicted the model could increase the long-term value of the adviser’s business by up to 71 per cent in four years and up to 93 per cent after a decade.
“Many advisers have told us that they want to be less dependent on up-front revenues, and that they want to grow their recurring revenue,” AIA Australia general manager of Life Insurance, Damien Mu, said.
“Through this program, we believe we can assist advisers in managing their cash flow while transitioning them onto the hybrid commission model, which can increase the value of their business over the long run.”
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