Good response to more sustainable commission: AIA

The insurer has previously had two options: Upfront commission of between 180% and 200% and trail commission of 5% to 7.5%, or upfront commission of 110% and trail of 25%.

But it has developed a new commission structure to help advisers switch between the two: 150% upfront on new sales in the first year, then 45% in each of the following two years afterwards.

Graeme Edwards said it was an option for advisers to consider and the response had been positive.

“It was launched as a discussion point. For this to work we need long-term business that stays on the books. If that suits your business model, if your business is growing and you’re looking to build a strong relationship with clients this might be for you.”