Life insurer, Tower Australia, has taken a first step after the proposed FOFA banning of commissions on risk products. The insurance giant has joined with online financial portfolio administrator, Praemium which will give Tower access to its 200 planner groups.

The partnership allows Tower to be the sole life insurance product provider on the platform. Tower products available will include life cover, permanent disability, critical illness, income protection, and business expenses cover.

Tower will pay Praemium an undisclosed fee for Tower's access and integration into its insurance and investment platforms, and the planners that use them.

Arthur Naoumidis, Praemium Group chief executive said he expects this move to be reflect across the platform industry by year's end.

"Honestly, I expect all platforms to be doing this by the end of the year," he told Financial Standard.

Naoumidis said the two parties were able to act quickly as they are independent, with several of Praemium's major planning groups already expressing keen interest.

"Planner response has been very positive, we are very confident there will be a lot of interest from our clients and from the wider adviser market. Hopefully this action by us will attract new planning groups to our platforms where advisers can now use a flexible insurance offering," said Naoumidis.

Naoumidis said it made sense for advisers to use a platform where insurance is available fee-based so they can charge a whole fee.

"TOWER strongly supports flexibility and choice in product remuneration structures. This partnership with Praemium provides that flexibility and choice for advisers and their clients," said Brett Clark, chief executive, Tower Australia.

Currently around 200 planning groups use Praemium's platforms with $46 billion of assets in Australia.