Skip to main content
  • Individuals
    • Individuals
    • Business
    • Adviser
  • Login
  • Search
  • AIA Australia | Adviser
  • Our Products
    • Priority Protection
    • Priority Protection For Platform Investors
    • AIA Vitality
    • AIA Health Insurance
  • Partner With Us
    • We’re here to support you
  • Business Growth Hub
    • Business Optimisation
    • Resource Library
    • Technical Advice
    • Specialist Partners
  • Help & Support
    • Meet The Team
    • Claims Support
  • COVID-19 Support
    • Financial Hardship
    • Underwriting and Claims commitments
  • My AIA
  • Adviser Site
    Login to the adviser site
  • AIA Vitality
    Login to AIA Vitality
AIA
  • Individuals
  • Business
  • Adviser
  • Our Products

    Our Products

    Here’s some key information about our range of products.

    READ MORE
    • Priority Protection

      Priority Protection provides a selection of cover options to cater for a broad range of insurance needs.

    • Priority Protection For Platform Investors

      The Priority Protection for Platform Investors product provides your clients with a selection of plans to cater for all their life insurance needs.

    • AIA Vitality

      Our science-backed health and wellness program. Keep your business growing with AIA Vitality.

    • AIA Health Insurance

      Health insurance that gives back. AIA Health offers your clients up to 70% back on extras from recognised providers up to annual limits with AIA Vitality bundled so they can be rewarded for healthy habits.

  • Partner With Us

    Partner With Us

    We’ve got a team of experts to help you develop and grow your business.

    Find out how
    • We’re here to support you

      It’s not just about paying valid claims. We’re here to assist and support clients' return to life.

  • Business Growth Hub

    Business Growth Hub

    Use our specialist resources to grow your business and your client base.

    Find out more
    • Business Optimisation

      We have developed some tools to help you optimise your business growth.

    • Resource Library

      Tools, resources and documents you need to look after your clients.

    • Technical Advice

      Our technical page will help you self-educate on key advice areas.

    • Specialist Partners

      We've partnered with leading industry experts to provide you with specialist tools and exclusive offers.

  • Help & Support

    Help & Support

    We’re here to help answer any queries – big or small.

    Find Out More
    • Meet The Team

      Meet the people who will help you grow your business.

    • Claims Support

      Contact details for our Claims team and find out more on how to make a claim for your clients.

  • COVID-19 Support

    COVID-19 Support

    We're here to help in a time of crisis.

    • Financial Hardship

      Support for customers experiencing financial hardship.

    • Underwriting and Claims commitments

      Find out more.

  • My AIA

    My AIA

    Log in to our adviser site to manage your client documents all in one place.

    Read More
  • Search
  • Contact Us
    • Call Us

      Open: 8am to 6pm AEST Mon - Fri

    • Email Us

2019
Prev | Next
Back to Top
  • {{title}}

    {{label}}
  • Life Insurance Framework final phase reminder

    24 October 2019


    On 1 January 2020, the final phase of Life Insurance Framework (LIF) remuneration rules will be implemented across the industry.

    Watch out for our updates in upcoming months. As we approach 1 January 2020, we will be communicating updates, outlining LIF rules and how they relate to your experience with AIA Australia and Priority Protection and Priority Protection for Platform Investors.

    Your relationship with us is extremely important and with this in mind, I want to remind you again about the potential impact to your commission on the current business you have with us for completion.

    With the final phase of LIF, there is no transition and hence grace period to the commission rate of 66% from 1 January 2020 and if any business fails to complete (issue) before this date it will be subject to the new commission structure.

    Life Insurance Framework

    Commission rates

    The maximum allowable commission in relation to LIF policies (i.e. those which were not eligible for grandfathering prior to 2018) will be adjusted in line with the final phase of the LIF rules.

    LIF article image 1

    Commission is payable on the total annual premium excluding any policy fees, premium frequency charges, Government stamp duty and the AIA Vitality Contribution Fee (if applicable).

    The above commission rates apply to new policies issued from 1 January 2020 as well as alterations made to any LIF policies on which AIA Australia pays new business commission. 

    no grace period on commission changes

    As was the case with the second implementation phase, the LIF regulations DO NOT allow for a grace period in which applications submitted but not issued in 2019 can upon issue, be paid commission at the 2019 maximum upfront commission rate of 77%.

    As always, AIAs underwriting and administrative teams are working extremely hard to achieve a quick completion process. To maximise the opportunity for your client’s policy applications to be issued/completed by 31 December, please ensure you allow adequate time for this process if you wish for a policy to be issued prior to the end of 2019.

    NOTE: Any policies issued in 2020 will be subject to the new 2020 commission maximums.

    Level commission

    Remuneration paid under the level commission structure has not been impacted by the LIF changes:

    • Current 30% (incl. GST) (subject to dial up/down) is still available
    • Clawback period for new policies or increase/additions is 12 months from the date year one commission is paid on the original cover or increase/addition.

    clawback rules

    The two year clawback period for all policies not grandfathered prior to LIF and for which upfront commission is selected still applies. This clawback period applies from the date the policy is issued. However, where cover under a policy is backdated as a result of a client or adviser request, the clawback period will not apply from the backdated date. It will apply from the date on which AIA Australia made the decision to issue the policy.

    Any commission paid on additions to a policy after the two year clawback period has ended will be subject to a 12 month clawback period.

    upfront commission clawbacks

    LIF article image 2

    Cancel and replace - client initiated rules

    Following on from the 1 January 2018 LIF changes, if a policy is cancelled and replaced, a brand new policy will be issued and will therefore be subject to the LIF regulations. Any commission payable (including any advanced payment of renewal commission in year one) will be paid subject to the new LIF rules, including the two year clawback period.

    Should you need further assistance or discussions relating to this matter, please contact your State Office or AIAA CDM.

    Contact AIA

    1800 333 613

    PO Box 6111
    Melbourne VIC 3004

    enquiries@aia.com.au

    AIA Global aia.com

    Contact AIA

    1800 333 613

    PO Box 6111
    Melbourne VIC 3004

    enquiries@aia.com.au

    Help and support

    Make a claim

    Frequently asked questions

    Customer feedback

    Complaints process

    Whistleblower policy

    Form library

    Explore AIA

    AIA Vitality

    Health insurance

    Life insurance

    OneLife

    About AIA

    Careers

    Our people

    Our commitments

    Media centre

    Our awards

    FSC commitment

    Help and support

    Make a claim

    Frequently asked questions

    Customer feedback

    Complaints process

    Whistleblower policy

    Form library

    explore Aia

    AIA Vitality

    Health insurance

    Life insurance

    Content Hub

    about AIA

    Careers

    Our people

    Our commitments

    Media centre

    Our awards

    FSC commitment


    Copyright © 2020. AIA Group Limited and its subsidiaries or affiliates. All rights reserved. Priority Protection and Priority Protection for Platform Investors products are issued by AIA Australia Limited (ABN 79 004 837 861, AFSL 230043). AIA Vitality, a personalised, science-backed program that supports members every day to make healthier choices, is available with eligible products issued by AIA Australia. AIA Health with AIA Vitality is issued by AIA Health Insurance Pty Ltd ABN 32 611 323 034, a registered private health insurer governed by the Private Health Insurance Act 2207, Private Health Insurance Rules 2007 and the AIA Health Insurance Pty Ltd Fund Rules. The information on this website is current as at 3 September 2020 and may be subject to change. It is general information only and is not intended in any way to be financial, legal, tax, health, medical, nutritional or other advice. You should consider your own personal circumstances and needs and view the relevant product documents, fact sheets, fund rules and terms and conditions before making a decision to acquire such products. If necessary you should obtain professional advice from a financial, tax, medical or health professional. Unless expressly stated, any views or expressions of opinion (including any video content) do not represent the opinion of AIA.
    Terms of Use | Privacy