The structure is designed to discourage churn and boost sustainability.

The company made headlines in Australia this week when it revealed it was trying to get more advisers there to sign up for the system.

It said that 80% of business there was being written on upfront commissions of 115%. To counteract that, it was offering an extra 10% on top of the 72.5% that was offered under the hybrid deal.

The extra commission will only be paid on electronic applications because the company said that paper applications tended to have up to a quarter of their information missing.

Asteron Life’s executive manager of intermediated sales Mark Frecklington said the hybrid option that was offered in New Zealand – spread 20 – was somewhere between an upfront and a renewal offer.

“The market’s reaction to the hybrid model in New Zealand has been positive, which is really encouraging. Around 30% of Asteron Life’s new business is now being submitted under the hybrid structure. It’s increasing steadily. What’s right for each adviser’s business is key, and what’s right for their client is key.”

He said the hybrid model worked to deliver value.

“When advisers combine an appropriate level premium structure with the hybrid model, their revenue flows remain strong and they’re also building future value for their business. The adviser who uses this strategy is going to benefit from a future income stream which supports them as they service existing clients down the track. It works really well when there is a genuine customer need for level premium.”

He said Asteron wanted to offer a long-term, durable offer than provided affordable protection for customers. “We want that offer to work in with the adviser business model so they benefit from long-term value creation.”