Asteron Life will pay advisers an extra 10% commission in year one for using its e-application process and hybrid payment system.

The move aims to encourage advisers to move from upfront commissions to a more sustainable payment model.

Asteron admits more than 80% of its business is written on upfront commissions, and the industry has questioned the long-term sustainability of this payment system.

The group now wants more advisers on the stepped hybrid structure that pays less commission in the first year than upfront payment.

Asteron EGM Adviser Distribution Jordan Hawke says the hybrid system allows advisers to create more long-term value in their business, while improving cashflow.

“I have personally spoken to many advisers about the future of our industry and I have strong support for the need to change to a different remuneration model,” he said.

“While this may be seen as a short-term, tactical solution, it responds to the challenges given to me by advisers.”

Mr Hawke says the hybrid system supports advisers who want to get efficiency in their business through e-applications.

“Asteron has been talking about the structural issues affecting our industry and the need to look at all elements, including product structures, cost of acquisition and retention,” he said.