Asteron Life has made changes to the production bonus structure on its products.
The insurer recently reviewed its commission structures for advisers where it noted it was also reviewing the production bonus structure on its products with further details to come (see: Asteron Life Reviews Commissions…)
Asteron Life Executive Manager Life Distribution, Graham Hill, says the insurer is simplifying commission payments upon issue by removing Production Bonuses from its current life commission structure, based on its review of commission structures and feedback received from advisers.
“The initial commission will be increased, which means there will be no change to the overall commission advisers receive,” said Hill.
“Our Flexi-Rate options are also being expanded to offer more options for advisers, including the 150 percent upfront and 20 percent servicing commission which became a permanent option earlier this year.”
He said Asteron Life wants to help advisers to deliver great customer outcomes, while still remunerating advisers fairly for the work they do.
“Advisers working with us are able to reduce their commission to offer customers discounts, but this has only ever been possible on the initial commission and not the production bonus,” Hill explained.
“Advisers will be able to receive the same remuneration for new policies, but will also have greater flexibility in providing customers premium discounts on their life products if they choose to.”