Following consultation the Finance & Technology Research Centre (F&TRC) agreed to produce a draft good practice statement on business retention processes at its June Protection Forum.
This has been identified as the key operational issue by distributors involved, which includes Sesame Bankhall Group, LifeSearch and Direct Life & Pension Services.
The work aims to improve early warning systems to identify contracts at risk of being cancelled early. Intermediaries should know immediately about any policies which may have been cancelled or where a direct debit missed, instead of finding out in the post a few weeks later, by which time it is often too late to act.
Phil Jeynes, Head of New Business at LifeQuote, part of Direct Life & Pension Services, said: "To be able to challenge the perceptions distributors hold of what is, is not, and should be possible in the Protection arena is key to the usefulness of the Forum in general, and often the open and frank input of the reinsurers around the table is a key factor in moving the agenda forward positively."
The proposal put forward by F&TRC identified a set of standardised market practices to improve business retention. The aim is now to evolve this further and bring back a draft good practice statement that firms can review at the next meeting, in September.
The Protection Forum facilitates business efficiencies in the sector for the benefit of distributors, product providers and most importantly consumers. The issues discussed are raised solely by distributors and include a range of issues.
Pioneer CEO, Andy Chapman, says: "As a direct result of the last Protection Forum in we're planning to upgrade the service we offer intermediaries both on and offline - look out for changes later this year. It's great to be part of a forum that drives real innovation and change."
