The FCA has recently intensified its scrutiny of product switching, identifying it as a high-risk area in its latest update and noting that some rebroking practices can lead to poor consumer outcomes.
To help firms meet their Consumer Duty obligations and improve client outcomes, Paradigm Protect has teamed up with Defaqto to provide free access to Defaqto’s CIC Compare software, alongside a range of compliance service support options.
Defaqto’s CIC Compare tool enables advisers to compare Critical Illness Cover (CIC) products dating back to 2009, using real insurer claims data to deliver evidence-based, credible comparisons. The system is designed to help advisers clearly demonstrate value and suitability when reviewing or replacing a client’s protection policy.
To complement the technology, Paradigm Protect has introduced new compliance support services aimed at helping firms formalise their internal switching processes and audit client files, ensuring consistency, transparency, and compliance across all advice activity.
The launch underlines Paradigm Protect’s commitment to providing DA firms with the technology, tools, and governance support required to deliver high-quality, Consumer Duty-compliant advice.
“We wanted to support firms on the Product Switching journey because we recognise it is not only an area of regulatory focus but clearly one of risk to the client if the product they ultimately are recommended is inferior to their original one," Mike Allison (pictured), director of protection at Paradigm, commented.
"With the increasing complexity surrounding Critical Illness conditions, we know by offering free access to this software, it will support advisers during research and suitability, and ultimately lead to the best possible outcomes for the consumer"
“Coupled with our compliance expertise, we will help firms develop a consistent procedure for reviewing and potentially replacing client CI contracts and supply an ongoing review of files for them once that procedure has been embedded into the firm’s process. We are mindful of the commercial pressures DA firms are under, and by offering the software at no cost - coupled with our compliance service - we are providing peace of mind to both advisers and clients alike.”
