One in four IFAs previously recommending NU no longer do so
A quarter of intermediaries who used to recommend Norwich Union (NU) have stopped using the firm due to poor service, according to findings from the latest COVER Insight research.
The annual survey, which questioned nearly 600 advisers, revealed that a staggering 25% have stopped using NU after the insurer failed to deliver adequate service levels. Poor administration was also cited as one of the main reasons IFAs decided to turn their backs against the provider.
Peter Chadborn, principal of CBK, said he was not surprised by the findings. "Norwich Union is definitely one of the companies that recently have experienced low service levels," he said.
Arguing that service levels are key when deciding what company to use, Chadborn said: "There are companies that we don't use anymore because of poor service, regardless of whether they have the most competitive rates or not.
"We have lost clients in the past due to poor service because inaccurate information and poor service often go hand in hand," he added.
Alan Lakey, principal at Highclere Financial Services, also thought that NU had failed in terms of service, but added that the firm is not alone.
He said: "NU has exhibited poor administration over the past 18 months but I guess that most providers have at some point in the recent past.
"NU e-mailed me and other advisers confirming service issues, saying matters have improved. My experience is that they have improved, although the market leader must be Scottish Equitable, which is able to regularly issue acceptances within a week.
"The wooden spoon is currently held by Scottish Provident, which has fallen from its once lofty position to the point where I am now afraid to recommend it unless the client is happy to wait six months for acceptance terms," he added.
However, Chadborn was not convinced NU's service had seen enough improvements. "It will be an uphill challenge to persuade us that they have improved their service levels," he said.
Commenting on the findings, James Evans, spokesperson at NU, admitted that in 2005 the provider had been suffering from a number of service issues. He said: "Frankly, we weren't good enough."
In response to feedback, however, the provider has tried to improve its service levels and it now takes it five days to underwrite a clean life cover case, down from the 15 days it took last summer, Evans explained.
"We have made really good improvements but we still have a long way to go," he added.
