Legal & General and Aviva top the latest Defaqto list of IFAs’ preferred protection providers but are also among the firms with the worst satisfaction rating.
Defaqto carried out research with 500 IFAs as part of its latest report into the life and protection industry, with IFAs asked to nominate their preferred providers.
L&G had the most nominations with 37 per cent of IFAs choosing it as one of their preferred providers. Aviva is second with 32 per cent while Aegon and Scottish Provident are joint third with 15 per cent.
Providers that scored lowest were Unum, Fortis and Pioneer.
But L&G and Aviva were also among the worst performers on satisfaction levels.
L&G achieves a satisfaction score of 59 per cent and Aviva scores 56 per cent. Zurich gets the highest satisfaction score with 72 per cent.
Defaqto insight analyst for life and protection Ben Heffer says: “It is notable that those providers with the highest nomination rates as preferred providers are not necessarily those with the highest satisfaction indices. Their strategy therefore to remain in the market relies on them being able to continue to offer the lowest rates.
“This is a precarious position to be in as they have nothing more to offer the IFA, for example, additional service, in order to increase market value.”
L&G protection product director Bonnie Burns says a review of the company’s protection range in recent months has got positive feedback and is seeing improved sales. Burns says: “In terms of relationship management and sales development we continue to invest in face-to-face and phone support and have added to our capability in recent times.”