"We are not advocating to ban commissions altogether": Everett, FMA
Ministerial Diaries - now proactively disclosed

Legacy customers should not be given less attention than newer customers... but there is more than one way to do that

The Financial Markets Authority and Reserve Bank concluded that those considered to be legacy customers, clients who currently are operating on policies that are no longer on offer to new clients, should not be disadvantaged as a direct result of current employees lacking relevant knowledge on retired policies. Current operations in place to service clients who wish to remain on legacy policies, include placing the workload on a number of experienced employees who have knowledge on the various retired policies.

Our regulators suggested in the conduct and culture report suggest that insurance companies invest in employee training on legacy products, and through this, insurance companies are able to ensure that all customers are able to experience optimal customer service. (Click here to read more).

But there are other approaches, and there really have to be. As most insurers will know, training staff on what could be an ever-growing range of products must have a limit in terms of effectiveness. Sooner or later you need to shift people from legacy products, and build new products with terms that allow you bring them with you - rather than isolate them on 'legacy island'.

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