Protection providers are failing to meet the requirements of IFAs in seven out of 10 service functions, according to a report from Defaqto.
The report, Protection Service in the UK, is based on a survey of 500 IFAs and identifies what IFAs consider the most important service functions from a total of 39 examined and what they consider to be the industry’s preferred protection suppliers.
The most important satisfaction criteria to IFAs are new business administration, claims administration, staff competence and integrity.
By combining importance with industry performance, Defaqto says IFA expectations are being met in only three out of the 10 most important service functions, while expectations are being exceeded in other less important areas, indicating a mismatch of resources.
Skandia Life (86%), Friends Provident (78%) and Axa (77%) achieved the highest satisfaction scores, while Scottish Provident (67%), Norwich Union (68%) and Bupa (69%) received the lowest satisfaction scores.
Legal & General and Norwich Union are the preferred providers for term assurance and term assurance with critical illness, while Canada Life and Skandia Life are preferred for whole of life, and Friends Provident, Norwich Union, Legal & General and UnumProvident are preferred for income protection.
IFAs nominated as preferred providers those companies which, on balance, meet most of their criteria, but with the exception of Friends Provident and Skandia Life those companies are not the best for service delivery, which Defaqto says demonstrates price is a major driver.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined