Insurers rethink agreements

The way insurers deal with advisers is to undergo significant change as a result of the Financial Services Legislation Amendment Act, and the Government’s work on the conduct of financial institutions.

It has signalled it wants product providers to be more accountable for the actions of their intermediaries.

AIA has written to its advisers with an updated agreement with a code of conduct and adviser obligations including an expectation that advisers provide a service in return for renewal commissions and can show their records in cases of dispute.

It includes the right to transfer the servicing of clients to other advisers, although renewals would not necessarily automatically transfer, too.