Paradigm Protect has launched a new product switch system with Defaqto to help advisers handle product switching more effectively.
The move comes as the Financial Conduct Authority (FCA) put more focus on product switching, calling it a high-risk area in its latest update, and warning that rebroking can sometimes lead to poor outcomes for customers.
The Defaqto CIC Compare tool lets advisers compare critical illness cover products from as far back as 2009, using real insurer claims data.
The aim is to help advisers show clear value and suitability when reviewing or swapping a customer’s protection policy.
Paradigm Protect has also brought in new compliance service options, to help firms formalise their switching procedures and audit file processes.
This is designed to make sure firms remain consistent and compliant across their advice.
Mike Allison, director of protection at Paradigm, said: “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.
“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.”
Allison added: “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.”
