Asteron Life launches sustainable remuneration model creating long term business value for IFAs

SYDNEY - Nov. 20, 2013 - PRLog -- Asteron Life is empowering advisers with an innovative remuneration structure that provides a sustainable financial model, while also improving the speed and efficiency of clients’ insurance applications.

Called “2 for 10”, the offer will help advisers transition from upfront commissions to a business model that creates long term value for their business.

"Asteron Life's goal is to deliver value for IFAs and their clients. Our insights reveal that over 80 per cent of business is written on upfront commissions. This is good for cash flow, but not for building advisers’ business value,” said Jordan Hawke, Asteron Life Executive General Manager, Adviser Distribution.

“I have personally spoken to many advisers about the future of our industry and I have strong support for the need to change to a different remuneration model. While ‘2 for 10’ may be seen as a short term tactical solution, it responds to the challenges given to me by advisers.

“We all recognise that consumers who receive advice from an adviser have better financial outcomes, and it is important that advisers get paid for this advice. ‘2 for 10’ is designed to support advisers that want to get efficiency in their business through e-apps, and shift to an alternative remuneration model.

“Asteron Life has long been talking about the structural issues affecting our industry and the need to look at all elements, including product structures, cost of acquisition and retention. ‘2 for 10’ is a step in supporting the future direction of our industry,” Mr Hawke said.

Under the offer, Asteron Life will offer an extra 10 per cent commission in year one to advisers who write new business from 11 November 2013, in relation to Asteron Life 'Complete' using:

Asteron Life’s E-application process (including, if applicable, Tele-interview), and
Hybrid or Stepped Hybrid commission structure. If advisers choose an Upfront or Level commission structure instead, they will not be eligible for the ‘2 for 10’ offer.

“Hybrid or Stepped Hybrid structure might earn the adviser less commission in year one compared to up-front structures, but provides a transition solution to increase the long term value of their business,” Mr Hawke said.

-ENDS-

MEDIA CONTACT

Helen Han, Suncorp Life Corporate Affairs: 0457 535 639 / helen.han@suncorp.com.au

About Asteron Life:  Asteron Life is a specialist provider of life insurance to financial advisers in Australia and New Zealand and is a part of the Suncorp Group. Asteron Life’s broad range of life insurance products has been designed to protect customers, their families and businesses against the financial impacts of death, sickness or injury. For further information, visit: www.asteronlife.com.au
Asteron Life’s ‘2 for 10’ offer runs until 30 June, 2014
The Asteron Life 'Complete' product is a comprehensive suite of life insurance covers