Protection providers are falling short of expectations in the most important areas of service as rated by financial advisers, according to research.
A survey of 267 financial advisers covering 200 protection providers revealed the latter are performing below the expected standard in both underwriting services and claims handling and administration – the two most important factors financial advisers take into account when judging service.
The findings are published in a new review by financial information business Defaqto, which gives protection providers a gold, silver or bronze rating depending on their performance across 10 different categories.
The biggest rise in satisfaction on the previous year’s survey were seen for product design, which moved from 6th place to 4th place in terms of importance, and business development managers, which climbed from 10th to 7th.
Defaqto says the ratings, which are available through its research software, Engage, will give financial advisers greater insight during the process of choosing partners.
David Cartwright, head of insight and consulting for wealth and protection at Defaqto, said: “Our survey with financial advisers clearly shows that if a feature of a service is important then the delivery of that feature must be equally as important.
“Falling short of this could cause adviser dissatisfaction, so providers need to work hard at readdressing the balance, even when the area is that of protection which is often seen as rate driven.”
Roy McLoughlin, associate director at London-based Cavendish Ware, said: “Underwriting services can always be improved, but it is not always providers’ fault. It is sometimes the problem of doctors. The more we can avoid doctors, the faster underwriting is going to be – that is the never-ending issue.
“Product design is getting more and more innovative – that is definitely to be applauded. This is a constant work in progress. It is very important that insurers talk to and listen to distributors, as we are the people who distribute their products. Greater communication manufacturers and distributors is always utopia.”
simon.allin@ft.com
