The FCA has just published its final rules on Consumer Duty and given firms a three-month extension to implement the changes (by 31/07/2023). Although that sounds like a long while off, this is a ‘significant shift in culture and behaviour’ and requires a ‘higher standard of care and expectation’.
The good news is that LifeQuote have ready made services to take the burden away
Under the new rules, there will be an even greater emphasis on intermediaries to protect retail customers and serve their best interests, by giving them access and information on products and services that meet their needs. Protection undoubtedly has a key role to play; after all, it supports good customer outcomes and should be the foundation of all holistic financial planning. What happens to the dream home or golden retirement pot if disaster strikes? Or what happens if a policy doesn’t pay out due to a non-disclosure?
The principles behind Consumer Duty are intrinsically rooted in our purpose at LifeQuote: we exist to take away the barriers to protection advice and cover, helping advisers ensure more people are fully protected. As a key partner in the protection distribution chain, we are fully committed to the guidance and ensuring clients take out a policy that is ultimately fit for purpose: it pays out when it matters.
Five ways we can support you to meet your Consumer Duty requirements
We take on the risk of administering protection
We’ve been offering protection quoting and administration services since 1991, so have spoken to a lot of advisers over the last 30 years. Many have told us one of the biggest obstacles they face when it comes to writing protection is the risk of non-disclosure. Our LifeQuote Administration service takes care of this, as we complete and submit your client’s application on your behalf. Our Disclosure Protection frees an adviser from the hassle and risk of writing protection and ensures the removal of foreseeable harm due to client non-disclosure.
Advisers using LifeQuote to administer their protection applications save on average, three hours for every case, as we look after all the time consuming admin. You still have the protection conversation and keep the relationship, but we look after everything once you’ve sourced the quote – freeing you to have more effective client meetings and ensure a higher standard of client care.
The new Consumer Duty rules state firms must act to deliver good outcomes for retail customers. We have an early warning system at LifeQuote to help you identify policies at risk of lapsing – we can even liaise on your behalf to reinstate the case. This results in better persistency and a better outcome for everyone: your client continues to be insured and you avoid commission clawback.
Research to help you recommend the most suitable product
Consumer Duty reemphasises the adviser’s role in delivering and discussing various products and services so consumers can make good financial decisions and meet their objectives. LifeQuote offer a number of planning and research tools, including SmartCompare, which helps advisers easily, quickly and conveniently compare different protection products. The downloadable reports can be used to support policy justification and can be integrated into an adviser’s compliance process.
Faster access to cover
Consumer Duty also includes guidance to ensure firms provide helpful and accessible consumer or client support. At LifeQuote, we complete and submit applications late into the evening and over the weekend, making it easy and convenient for clients to get their protection sorted at a time that suits them
No obligation consultation
LifeQuote has been providing protection solutions for over 30 years, so we’re confident we can help advisers meet the new regulations and obligations. Contact our friendly team for a no obligation consultation, where we’ll walk you through how we can help you navigate Consumer Duty, whilst helping you boost your protection sales.