Rob Stock has this article attacking 'money for nothing' payments on trail commissions on products where the adviser no longer has the right to advise on a product. Link.
When this issue was first raised in Goodreturns last year I had several advisers approach me pointing out that the financial agreement between the investment or insurance company and the adviser was made years ago, and never included a stipulation that investment advice would be given. So, they say, 'what has the financial contract got to do with the current situation?'
Rob Stock suggests it might cut prices:
"The costs of insurance could drop if calls to end 'money-for-nothing' annual commission payments to financial advisers who are no longer providing advice or service to clients are successful."
But it is very unlikely.
The number of products in the category being discussed is tiny. To provide some context, the premium in the affected category is between $80 million and $110 million, but this pales by comparison with the 1.986 billion not affected (Public FSC summary statistics to 30 June 2015).
Some of those old products are on ancient computer systems which cost a lot to maintain - when costs are properly allocated they may be making losses. I doubt very much that there would be much movement in actual premiums even for the specific products, let alone insurance in general.