The health insurance and protection market covered
Lifesearch crafts £1000 outsourced protection service for IFAs
Lifesearch has developed an outsourced protection service for advisers which it will bring to market if there is support for the offering, CEO Tom Baigrie has revealed.
Advisers who take up the service would isolate the needs of the client, then provide Lifesearch with their factfind and a request to quote a fee for all the advice to best resolve their protection needs.
Lifesearch would operate a two-stage charge for the service, with the protection advice paid for when it is given, and a fee for underwriting charged on successful applications.
Baigrie estimated the service would cost about £1000 overall. The charge would be split between protection advice at £100 per hour with a £250 minimum, legal advice at £200 per hour with a £250 minimum, and underwriting advice and tele-underwriting at £40 per hour.
He said he would only target the offering at the "most professional" advisers disciplined enough to totally step back from the process once it had been outsourced to Lifesearch.
"Once the professional introduction has been made there can be no second guessing, no interfering, unless there is glaring evidence of negligence. Think of the relationship between a GP and a surgeon. Is such discipline possible among advisers?" Baigrie told delegates at the annual Institute of Financial Planning (IFP) conference in Newport yesterday.
He said he is currently guaging the level of support and demand for the venture before going ahead. The level of professionalism among IFP members makes them the most likely target group for the service, he said.
The Lifesearch chief executive handed day to day management of the business to managing director David Child last week so he could focus on creative projects at the firm.
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Usefuls ervice
Can see both sides of above argument, no one is going to be forced to use this service which may well make money for both parties. But is Lifesearch fully independent? I know Baigrie Davies is, but...perhaps someone can clarify.
Posted by: cynic | Oct 07 2011
Why?
Is it the act of a professional IFA now to palm off protection business because their fees are too high to provide value in this area? No doubt it's an RDR friendly practice.
Posted by: MarkG | Oct 05 2011
unbelievable
The IFP is one of a number of organisations that seek to raise standards. Swanny & Bill did not have the benefit of hearing what was an hour presentation on the potential complexity of protection so I will refrain from treating them as negatively as they have this article. The point is outsourcing to Lifesearch is cheaper than the time many of us would spend on a complex or often simple case. At my charge out rate £1000 buys 3 hours of my time, a maximum of 8 hours of our paraplanners time, perhaps 12 hours of an administrators time. As an industry that aspires to professionalism on so many different models is it not time we stopped over critiscising each other Gentlemen. Review the facts in full, consider time saving and benefit of knowledge of outsource partner based on volume and scale and debate with constructive criticism or observations.
Posted by: Mark Stokes | Oct 05 2011
Lifesearch
Am I missing something ? Step 1. A client asks you to review his need for life assurance, income protection etc. Step 2. You hand over the client's details to LifeSearch who charge an arm and a leg to source a suitable product. Step 3. LifeSearch does very well out of your client bank and you don't earn a bean. Step 4. Client thinks "why do I need an IFA if he can't even arrange some basic protection for me". I agree ! Why does the client need an IFA who can't organize some basic protection ? Can I also ask why it is that IFP members are viewed (suddenly) the only 'professionals' working in Financial Services ?
Posted by: Bill Wells | Oct 05 2011
Unreal
I guess the calls into question the term "IFA" Why would any IFA not do protection ? Surely this is a basic, fundamental part of the advise process. Or have I got it wrong?
Posted by: Swanny | Oct 05 2011
Interesting
Tom as always spoke eloquently around the Lifesearch Offering and it struck me as an excellent opportunity to further outsource. As always the devil will be in the detail and I'd like further debate around commission and rebates however we will certainly be exploring further.
Posted by: Mark Stokes | Oct 05 2011
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