Four life companies have altered commission payments of late, including AXA, which has presented new terms for persistency and upfront commissions; and AMP, which has made revisions to its adviser business terms.

Of particular interest, however, are changes by Sovereign and Fidelity Life, which are taking very different approaches to structuring commissions. Sovereign has moved to offer a fixed basic initial commission of 230% for all TotalCareMax Life Cover, Rate for Age policies, while Fidelity Life has introduced a new service commission and deferred initial commission.

Fidelity Life's Commission Supplement states that service commission will be paid to intermediaries that have a risk in-force book greater than $100,000 and that can demonstrate they are maintaining their clients. It also states that advisers must spread at least 20% of initial commission, with initial commission spread into the second and subsequent years referred to as deferred initial commission.

Chatswood Consulting principal Russell Hutchinson says Sovereign, which tends to pay more upfront commission than Fidelity Life, has chosen to focus on paying individuals. Fidelity Life, meanwhile, has been growing fast and has a loyal client base.

"Fidelity is only nudging them one step towards taking more spread commission, which they know adds to their business value anyway," Hutchinson says.

Life Brokers Association president Rob Flood says more needs to be done to attract new clients into the market, rather than existing policies being churned between insurers touting enhanced benefits.

"The churn is something that is a real worry, both for clients and companies," he says.

Flood says Fidelity Life recognises that its Platinum offering is a good, well rated product.

"The commission is only one side of the equation, the policy benefits and features are much more important than commissions selling products," he says.

Flood says Sovereign have extended the period the policy needs to be on the broker's book to actually receive the higher commission.

"It's been a double-sided sword really. You get more commission but the policy has got to go longer," he says.