Chief sales officer Kerry Boielle said the upfront commission paid would increase a small amount – how much was commercially sensitive – in recognition of the increasing documentation and compliance effort required from advisers.

She said this reflected the fact that most of the adviser's work was done around the policy being issued.

But the bigger change was that, instead of a percentage of premiums paid as trail each year, Southern Cross would pay a set amount per life insured.

She said that amount was sensitive information, too, but that if an adviser were paid $50,000 this year from Southern Cross, they would be paid $50,000 next year, too. But it would be expressed as a set payment per client and would then only increase with the CPI.

Boielle said it was more a service-fee approach that clearly remunerated advisers for their ongoing work with clients.

Because it was not tied to premium size, it would mean that if advisers replaced older clients with younger ones, they would not reduce their trail income.

But they also would not be paid more as premiums rose over time.

Health insurers have struggled with ongoing increases in health costs outpacing general inflation.

Boielle said a per-client rate was a more sustainable commission structure.

“It’s important to find a good balance between something that’s playing well for members and paying advisers for the work they do in a fair and consistent way.

"This change is part of our strategy of ensuring ongoing affordability for our members. As New Zealand’s largest health insurer it is our responsibility – and in the best interests of our membership – to keep costs to a reasonable level.

"Advisers play an important role in health insurance decision-making. This is a complex form of insurance and well-informed advisers can add significant value by helping their clients understand the relative offerings of the plans, benefits and loss ratios of each insurer."

She said about 20% of Southern Cross sales were through advisers.