The Finance & Technology Research Centre is to benchmark the different commission options and tele-underwriting processes on offer from different protection providers.
The project was agreed following the latest meeting held by F&TRC’s Protection Forum in March.
Distributors made the point in the meeting that tele-underwriting systems can vary widely across the protection market, with advisers having to get to grips with many different sets of rules and processes.
They were also concerned that providers’ range of commission options are not always easily obtainable.
Plan Money director Peter Chadborn says: “It is about time this issue was addressed because the protection industry is way out of step with the rest of financial services when it comes to remuneration options.”
F&TRC director Ian McKenna (pictured) says: “The issues addressed by the Forum are those raised by distributors. We then discuss the issues as a group before agreeing whether or not to begin the process of possible improvement by measuring and benchmarking what each provider currently does in a certain area.”
F&TRC will report its findings in June.
The Protection Forum group has also agreed to build a draft statement of good practice on how to collect customer signatures for online applications.
Last October the Protection Forum issued a draft good practice statement on business retention, which urged providers to contact advisers sooner if clients miss payments.