Asteron Life has developed a tool to help advisers model the impact of proposed commission changes on their revenue.

The changes should take effect on January 1, although legislation has yet to be introduced to Parliament.

“Advisers have understandably been concerned about the shift in commission structures, as well as clawback provisions and how it will affect their cashflow,” Asteron EM Mark Vilo said. “In response, we’ve created a tool to help them make informed decisions about their business.”

The program asks a range of simple questions about new business, inforce premiums, number of clients, remuneration types and lapse rates. It then calculates revenue over a particular period and shows the impact of different clawback scenarios.

Mr Vilo says the proposed reforms may eventually help advisers increase their business value.

“Advisers who see life insurance as a long-term business proposition will benefit from a reform that can increase the value of their book over time. But there will be a few leaner years from a cashflow perspective as they adjust to new conditions.

“We have every reason to feel optimistic about our industry’s future.”