Sum-insured remuneration model progressed

The Government has flagged that it will crack down on sales incentives that could drive poor customer outcomes – it is expected that will mean a move away from high upfront commissions for life insurance advisers.

Darrin Franks and Bruce Cortesi have followed up last year's release of their proposed new commission plan.

It would involve advisers receiving commission based not on annual premiums but on up to 1 per cent of the total sum insured. The maximum an adviser could charge would be linked to their persistency.

Trail commission would remain but would be paid to the adviser providing the service, not the adviser who placed the policy.