In an effort to pre-empt an official policy response to risk advice remuneration, risk specialist dealer group Synchron has designed a new insurance product structure to resolve the issue.
In a statement issued yesterday, Synchron director Don Trapnell said his recent fact-finding mission to the UK with chairman Michael Harrison prompted the decision to develop the product structure.
“We noticed that in the UK, most policies are written on a level premium, set-term basis,” Mr Trapnell said.
“We have designed a product structure along similar lines and have put it out to tender to select life insurers.”
Mr Trapnell said the proposed product structure has received interest from three life insurers, with another asking to be involved.
“The structure we have designed provides the ability for the adviser to personalise the product to the specific needs of the client,” Mr Trapnell said.
“The product will have a number of level premiums and will be for a set term.
“Premium structures at first indication are comparable to current yearly renewable term rates and remuneration will be structured so there is flexibility to enable an adviser to mould the revenue to suit the effort required to secure the business,” he said.
He also added that he believes the product structure design will benefit advisers, licensees, insurers and the consumer.
“The industry is changing at breakneck speed.
“While we are pleased by recent announcements from AMP and Centrepoint, there are other levers that need to be pulled and addressed,” Mr Trapnell said.