From October 1, advisers with net annual new premiums up to $24,999 will be paid 150% in upfront standard commission.

Between $25,000 and $49,999 the rate will increase from 105% to 165%, between $50,000 and $99,999 it will increase from 170% to 180%, and advisers who place more than $100,000 in net annual new premiums in a December 1 to November 30 year will be paid 200%.

Advisers will also receive commission for renewal business, regardless of their production level, of 5% for year one and two, 7.5% for years three and four and 10% for five and over.

AIA has replaced the optional renewal commission with “Pendulum commission".

AIA says that advisers could choose to swap their commission structure for this option on a case-by-case basis. It gives much higher renewal commissions, which improves the value of an adviser business.

Pendulum gives upfront commission of 110% and then annual renewal commission, after year two, of 25%.

AIA chief executive Wayne Besant said it was a small adjustment to the commission structure. “It’s not a radical overhaul but it’s to make sure we’re relevant in the IFA market.”

AIA has also changed its clawback structure. It still applies for two years, with 100% clawed back in the case of a cancellation in the first 12 months, 50% in the next six months and 25% in the following six months.

Sales manager Graeme Edwards said the new structure was designed to be simpler.