The latest debacle from the Pru has obviously struck a chord with many of your readers (Money Marketing, April 17).
As a small to medium-sized IFA operation, we pride ourselves on being totally self-reliant financially and normally beyond the reaches of the minor disruptions that we see from time to time with most life companies.
Most companies will hold their hands up and admit an “oversight” when an error of judgement is made.
Not only has the Pru ignored the effect of its first faux pas (in delaying the processing of protection policies by over a month due to application volumes), it has now decided to really kick the IFA where it hurts again – in the pocket.
The Pru has decided to pull the rates on all submitted business with immediate effect – without notice despite the fact that some of these pipeline applications have sat in the Pru's in-tray for a month or more in some cases.
Our options are limited. We either accept the Pru's new terms (more expensive, of course) or we rebroke elsewhere and start the process all over again – leaving a humiliating experience with our clients. As a direct consequence, we will also lose sales and income. The Pru will not get the chance to negatively impact on IFAs and their clients for a third month. The damage is done and has been handled atrociously.
The industry most definitely has a lesson to learn to prevent a repeat of the Pru experience. Business that is already submitted and confirmed as received must without doubt be dealt with, no matter what. Companies must take responsibility for circumstances created by their own volition and when they don't, I am sure that the FSA will take a very clear interest in anything that potentially affects their remit as consumer protectors. Clearly, the Pru has not done right by their customers.
Premier Mortgage Management,