Asteron upgrades life in bid to reclaim lead

Asteron has finalised its recent round of life insurance upgrades with the launch of Asteron Lifeguard, along with a number of adviser incentives including commission structure changes and a reward program designed to reclaim a market-leading position in life insurance.

In tweaking the commissions paid to advisers, which were previously among the highest, Asteron has sought to bring them back in line with the market rate.

According to Graham Burnard, Asteron’s head of sales: “[The commission rate] was probably more competitive than it needed to be”.

“We had been reasonably static in market share, and we’re now reasserting ourselves as a major player; we want to get back to a leadership role.”

The up-front commission rate paid in the first year has dropped from 121 per cent to 116 per cent, with 11 per cent ongoing, allowing commission increases in other areas.

The hybrid commission rate has increased from 66 per cent to 72.5 per cent in year one, 22 per cent ongoing, and the level of commission rate is now 32 per cent in year one, up from 30.25 per cent.

Burnard said Asteron is excited about these changes, particularly its stepped hybrid model, because they “drive long-term business value for advisers”.

“It’s about aligning our economic interests with the advisers’ economic interests.”

Asteron has also made an effort to provide greater incentives to advisers with its partnership reward program, which is open to those with over $150,000 of in-force business at the start of the calendar year and rewards those who grow it by at least $100,000.

A number of advisers were polled for their opinions in developing the product changes brought by Asteron Lifeguard, which include a simplified underwriting process for proposed clients meeting certain criteria.

These include the addition of cancer cover as an option on its life and stand-alone total and permanent disability (TPD) policies, a 15 per cent upgrade on the provision of partial TPD payment, an income protection pregnancy ‘premium-waiver’ benefit and revamped premium-free child cover.

“We’re trying to get more information at initial application time in order to speed the process. As well as being competitive on price, we have to be easy to do business with,” Burnard said.