View more on these topics

Poor life office service costs each IFA 8,000

Declining service standards from life and pension providers are costing IFAs over 200m a year, according to research by insurance technology specialist FIS Software.

It analysis suggests that poor service costs advisers an average of 8,000 a year. This adds up to an annual loss of around 208m for the UK’s 26,500 IFAs.

FIS questioned 200 IFAs, and 21 per cent rate the service they receive from life and pension providers as appalling. While 62 per cent say service has worsened in the last 12 months.

Thirty per cent say, based on past experience, they expect to wait a week or more for information from a product provider.

Business development director William Watling says instead of addressing the problem in the long term, providers are opting for short-term solutions.

He says: “Many providers are opting for bolt-ons – IT solutions that may address their current needs but over the long term might only add to their system spaghetti and customer servicing problems.”

Derbyshire Booth Financial Management managing director Greg Heath says: “The service from life and pension providers must improve to enable IFAs to compete after depolarisation. The alternative is that poor service and dwindling commission rates will drive IFAs to focus efforts on the more affluent groups.”

Recommended

Tories pledge to match savings

The Conservatives have unveiled plans for a lifetime savings account, extending taxfree limits for Isas and giving employees access to financial advice.

Fine line for bond firms

The with-profits bond has taken its fair share of criticism but negative publicity for the product stepped up a notch recently after Bradford & Bingley was hit with a fine for widespread misselling both of with-profits and precipice bonds. B&B was hit with a fine of £650,000 and has had to set aside £6m to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com