Protection Forum to tackle business retention
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The Protection Forum has agreed to produce a draft good practice statement on ways to improve business retention.
At the last Protection Forum session in June, distributors identified business retention as the most important tactical issue needing to be resolved by the protection industry.
By producing a good practice statement the group aims to improve early warning systems and real time alerts so that firms can identify contracts at risk of being cancelled early.
Members at the June session recognised that intermediaries should be notified immediately about any policies that have been cancelled or where a direct debit has been missed, rather than finding out too late by post.
The Finance & Technology Research Centre was behind the launch of the forum with Kevin Carr Consulting managing director Kevin Carr in April.
FTRC managing director Ian McKenna says: “As the industry faces challenging economic times anything that can be done to ensure that consumers maintain their protection cover is a benefit to clients and advisers.
“Early notification when direct debit mandates fail will help the adviser act quickly to the cover stays in force where appropriate.
“It has also been suggested that millions in commission could be saved across the industry by using better business retention systems. The Protection Forum is demonstrating that providers are not only listening to the distributors, but many are already moving forward and acting on their feedback, which is exactly what these meetings are about.”
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