{"id":12407,"date":"2011-09-19T11:57:26","date_gmt":"2011-09-19T01:57:26","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=12407"},"modified":"2021-09-14T16:39:35","modified_gmt":"2021-09-14T06:39:35","slug":"poll-results-black-list-serial-churners","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/09\/19\/poll-results-black-list-serial-churners\/","title":{"rendered":"Poll Results – Black List Serial Churners"},"content":{"rendered":"

\n\t\t
In addressing the issue of churning, which of the following initiatives would you support?<\/strong><\/div>
    \n\t\t
  • Create an industry-wide black list for \u2019serial\u2019 churners (23%)<\/small>
    <\/div><\/li>\n\t\t
  • Offer more attractive remuneration to advisers for upgrading existing policies (19%)<\/small>
    <\/div><\/li>\n\t\t
  • Offer \u2018quality\u2019 incentives to advisers for maintaining low lapse ratios (17%)<\/small>
    <\/div><\/li>\n\t\t
  • Institute a consistent adviser responsibility across all insurers (13%)<\/small>
    <\/div><\/li>\n\t\t
  • Remove takeover terms for all re-issued policies (12%)<\/small>
    <\/div><\/li>\n\t\t
  • Ban upfront commissions on replacement policies only (8%)<\/small>
    <\/div><\/li>\n\t\t
  • Ban all upfront\/hybrid commissions but allow level commissions (6%)<\/small>
    <\/div><\/li>\n\t\t
  • Ban all commissions (2%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n

    Creating an industry-wide black list of serial churners has been the highest rated selection by advisers from a list of proposed solutions that address the practice of churning.<\/p>\n

    53% of respondents included the adviser black list\u00a0option within their\u00a0selection of proposed solutions, while the least popular choice was to ban all commissions (only 4% included this option).<\/p>\n

    Following the black listing of serial churners, the next most popular solution so far (with 44% support) is to offer more attractive remuneration to advisers for upgrading existing policies, followed by 41% support for the notion of offering \u2018quality’ incentives to advisers for maintaining low lapse ratios.<\/p>\n

    There has been a level of support for the two initiatives set out by the FSC in its recent churning announcement:<\/p>\n

      \n
    • Application of a consistent adviser responsibility across all insurers<\/li>\n
    • Removal of\u00a0takeover terms for all re-issued policies<\/li>\n<\/ul>\n

      To date, these initiatives have been\u00a0supported by 34% and 32% of our poll respondents respectively.<\/p>\n

      While we received many comments for and against the range of solutions we tabled in this poll, we continue to receive many comments from advisers who object to being considered as churning business if their clients cancel an existing contract for a new one, but where this results in the client’s best interests being served.<\/p>\n

      We reiterate that the vast majority of policies that are cancelled and re-issued are in the best interests of the client and do not meet the definition of churning, which relates only to those re-issued policies that are transacted in order to access additional remuneration.<\/p>\n

      But issues such as churning are rarely black and white.\u00a0 For example, Synchron Director, Don Trapnell<\/strong>, believes the term itself has morphed into a generic term that\u00a0describes all policies that are cancelled and reissued.<\/p>\n

      Mr Trapnell believes the entire\u00a0adviser community\u00a0is being unfairly\u00a0‘tarred’ with the churning brush, but where, in reality,\u00a0the vast majority is providing much needed and appropriate wealth protection solutions for the clients it serves.<\/p>\n

      Instead of simply addressing solutions to the\u00a0practice of churning, Mr Trapnell is also calling for the industry and the public to be on the same page when it comes to defining the term, both what it is and, just as importantly, what it isn’t.<\/p>\n

      We also acknowledge that the solutions we offered in this poll\u00a0are not a definitive list.\u00a0 Rather, they are the themes we have identified in speaking with advisers, licensees and life companies.\u00a0 We would\u00a0welcome your additional suggestions and points of view, all of which will contribute to this debate.\u00a0 Our poll remains open for another week…<\/p>\n","protected":false},"excerpt":{"rendered":"

      Creating an industry-wide black list of serial churners has been the highest rated selection by advisers from a list of proposed solutions that address the practice of churning.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-12407","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls","category-remuneration","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/12407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=12407"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/12407\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=12407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=12407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=12407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}