Under the Axa Evolve pilot scheme, the insurer will identify firms with poor persistency, review their business and look at ways to improve this. It will share good practice from firms with good persistency rates.
Axa Winterthur Wealth Management chief executive officer Mike Kellard says: “Good adviser persistency is key to building sustainable adviser business models – one of the FSA’s five key threads of its RDR, which is aimed at improving the industry’s reliability, trustworthiness and performance and to establish better long-term relationships with clients.”
But Axxis Financial Planning director Owen Wintersgill is sceptical about the benefits of the service. He says: “I do not think it will be useful because compliance departments are already required to show vigilance over persistency – or key performance indicators.”
Equity Partners UK managing director Kevin Tooze says: “Axa has a vested interest in piloting this scheme, of course, like any life company but good persistency levels can benefit both the IFA and the insurer.
“This biggest problem that all life companies have got is business going out the door. It is probably more of a problem for them than the IFA. The IFA will move business for better returns, tax efficiency or greater inc- ome stream.”