Jump Money is keen to engage the industry in a discussion regarding how cancellation rates can be driven lower. While Jump Money has a strong record when it comes to managing its net lapse and persistency rates he believes that improvements in both areas can be achieved..
Butler argues that providers in particular need to work to understand the significant differences and challenges that volume distributors, like Jump Money, face as well as understanding the nature of the enquiries they generate and the likely key performance indicators that this type of business will create.
He also stresses that the industry needs to look closely at the quality of media enquiries it generates in order to ratchet down the number of leads that cannot be fulfilled, are of dubious quality or have been targeted repeatedly in order to promote product churn.
Jason Butler, CEO of Jump Money, commented:
“As a volume distributor of life assurance products we want to see progress made on issues like policy cancellations and see an improvement across the market in terms of persistency rates.
"We are particularly focused on these areas at Jump Money, however, one of my first acts as the new CEO is to try to gain an understanding of the reasons for the current levels throughout the market, and to engage with providers and media sources of leads to deliver real improvement in this area.
"Our aim is simple, to work with such stakeholders to ensure they have an understanding of the challenges facing operators like ourselves and to ultimately make sure we can drive greater quality business while maintaining volume product distribution and advice.
“Improvements in quality are at the heart of this industry challenge and we particularly want to work with quality media sources to cut out some of the more common causes of cancellations which are a waste of both the distributor and the provider’s time and money.
"It is clear that to improve this area will require industry-wide consensus and co-operation plus a commitment to drive positive change from all stakeholders. However, we believe with support from all sides of the industry we will be able to deliver long-term success in these important areas not just for Jump Money’s business but for all distributors and advisers active in the marketplace.
"We are therefore urging all such players to engage in this important debate with us in order to firstly gain an understanding of the key problems and to then put specific actions in place to offer overall improvement.”
