One significant change is the increased focus on cancellation fees . While providers have always been mindful of these fees , the introduction of Consumer Duty has brought them under even greater scrutiny . The FCA allows cancellation fees as long as they are fair , clear and reasonable , but this raises the question : are these fees contributing to potential customer harm ? Many providers share this concern , leading to more scrutiny and questions than ever before . We are aware that some providers may decline agencies or offer non-indemnity terms where cancellation fees are present in documentation . You can charge cancellation fees in line with regulations , however , be mindful of the impact this may have on your provider agencies .
The next area of attention is lead generation . It is important to remember that business quality starts long before the advice process begins ; it starts with your lead source . Upfront investment in this area can yield long-term rewards . We are all familiar with less appealing adverts and cheaper lead sources , however , with lead generation , if something seems too good to be true , it probably is . When addressing business quality concerns , the first thing I examine are leads .
Building a relationship with your lead provider is crucial . This collaboration should go beyond simply purchasing leads to include monitoring conversion rates and cross-referencing them with cancellations . For instance , are cancellations concentrated within a specific batch of leads ? Cancellations are a natural part of the insurance business , and a 0 % lapse rate is rare , especially for firms writing high volumes . However , it is vital to monitor trends to identify when something is not working as it should . Providers are increasingly scrutinising lead sources , with many now inquiring about this during the onboarding process .
Revolut were often instant declines for providers . However , as these banks have grown in popularity , providers are adapting . If you were to ask a room full of people , many would likely have a Monzo account , for example . Whilst this area is constantly under review , it is worth noting that if your business banking is with one of these ‘ non-high-street ’ banks , you may face additional questions .
At the heart of all these considerations is preventing customer detriment – it is the top priority .
EVERY ASPECT OF BUSINESS QUALITY FALLS UNDER THE UMBRELLA OF PREVENTING CUSTOMER HARM .
Poor persistency , such as high cancellation rates , suggests a gap in the customer journey . Cancellation fees can potentially cause customer harm and act as a barrier to cancellation . A poor lead source might lead to a poor customer journey ; customers might not know who you are , why you are calling , or they may have been bombarded with calls from different firms . The introduction of Consumer Duty has underscored the importance of prioritising the customer and eliminating foreseeable harm , and business quality directly supports this goal .
Another area of change is in the acceptance of bank accounts . Previously , banks like Monzo and
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