Advisers are switching to hybrid commissions on life products because they offer greater value than upfront payments, according to AIA Australia.

It says 829 advisers have moved to its hybrid program since its launch in March.

The program offers advisers an extra 10% year-one commission on all new hybrid and level policies. It gives an extra 7.5% year-one commission in the second year of new submitted policies, and 5% for those lodged in year three.

Advisers can receive a 90% upfront commission for hybrid new business policies submitted in year one, 87.5% for those submitted in year two and 85% in year three.

AIA says advisers can increase the value of their businesses by up to 71% by the start of the fourth year, and by up to 93% at the end of year 10.

Perth-based Infuse Financial director Amien Sym says his practice recently joined the hybrid program, and the move has come at the right time.

“Looking at where our business is going over the medium to long-term, sustainability is the main focus. The decision to move to a hybrid commission structure allows us to increase recurring revenue over time and drive new business growth.”