AIA introduces new commission option

It is offering an option of 130% upfront and 20% renewal on core risk products.

Advisers can still choose the standard option of up to 200% upfront commission and 5% renewal in the policy's first two years, 7.5% in the third and fourth years and 10% a year from the fifth year on.

But chief distribution officer Graeme Edwards said AIA hoped the higher renewal option would be seen as adding value to adviser businesses.

AIA previously had a model of 110% upfront and 25% renewal available but Edwards said discussion with advisers revealed many felt 130% and 20% was a better option. “The extra first year helps with cash flow while still building a good renewal base.”