Churn debate: Australia moves to hybrid remuneration model

The policy was taken to the government by industry and ratified overnight.

The policy will consist of a maximum total upfront commission of 60% of the premium in the first year.

It will also include a maximum on-going or trail commission of 20% of the premium in all subsequent years.

Also agreed to was a three-year retention or clawback period to commence on 1 January 2016 and a ban on other volume-based payments, with appropriate grand-fathering arrangements consistent with the FOFA laws.