Paradigm Protect has added access to Defaqto’s critical illness cover (CIC) comparison software as part of a new switching compliance audit service.
The firm has introduced two options for its switching compliance audit service including the CIC Compare software:
- an ad-hoc audit and file review giving four licenses with 12 months access for £660 +VAT, or £560 +VAT to those firms already purchasing compliance from Paradigm;
- a three-year contract at £115 +VAT per month including more extensive ongoing compliance support along with the software access.
Paradigm said it was introducing the service as the Financial Conduct Authority (FCA) has intensified its focus on switching, highlighting it as a high-risk area and noting rebroking practices can sometimes lead to poor outcomes for consumers.
The Defaqto tool allows advisers to compare CI products dating back to 2009, using insurer claims data to deliver comparisons, the firm said.
“To complement the technology, Paradigm Protect has introduced a range of compliance service options to help firms formalise their internal switching procedures and audit their file processes, ensuring consistency, clarity and compliance across their advice framework,” it added.
Mike Allison, director of protection at Paradigm, (pictured) 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.
“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.”