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FMI Turns the Tables on Lapse Rates |
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Being in the insurance industry we are constantly inundated by the effects of the economic downturn and apparent recession. As insurance and specifically income protection is seen as a grudge purchase, our industry is particularly vulnerable to these market fluctuations and budget cutbacks.
In an environment where most insurers have seen lapse rates soaring and Financial Advisers struggling with clawbacks, FMI have seen an improvement in both individual and group lapse rates. An industry expert maintains that the value of individual policies lapsed last year increased by 40%. Furthermore when comparing the lapse rate over three half year periods, you see a consistent increase in lapses as economic turmoil worsens.*
FMI’s improvement compared to industry norm can be attributed to the following reasons:
1. Your support – Through the support of our Financial Adviser network we have been able to achieve this milestone.
2. Improved FMI client service levels – FMI is constantly re-defining processes and investing resources into our products and systems to improve our service levels. This helps our Financial Advisers maintain and grow their business, through the retention of client’s policies and a high policy acceptance rate.
3. FMI’s Claims philosophy – One of the best ways that FMI can support you and your clients is through paying claims – In 2008, we paid 97% of all TIP claims. This is one of the most important tests of any insurance company and we are proud of a claims philosophy that provides certainty to both you and your clients.
For over 14 years FMI has provided income protection solutions to businesses, individuals and groups. Our philosophies, niche focus and support from our adviser network ensure that we remain in consumer’s minds as the Leaders in Income Protection.
For more information on FMI and our individual and group products, please contact FMI’s Financial Adviser Distribution team on 0860 10 52 08, email sales@fmi.co.za. Or visit www.fmi.co.za.
* Peter Dempsey, ASISA. 2009. |
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FMI is an authorized Financial Services Provider FSP 2717 |
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Where can you find FMI in August 2009? Risk SA FA News Your Business Internet Find an Advisor FASA
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FINANCIAL ADVISER NEWS |
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Volume 31, July 2009 |