NPI, IFA Management

We developed NPI's Quality Improvement Protocol on a pilot project, overhauling IFA Management.  Originally, this was just expected to beef up credit control, to reduce the amount of money IFAs had to repay to NPI, and cut the cost of servicing the debt. We said, hang on a minute, these IFAs owe you money because they persuade policyholders to switch insurers, and you claw back commission.  It's probably a bad deal for their clients, so maybe these aren't the best IFAs to deal with?  

So, when people from all over the company arrived for the first workshop, we started with "what do you mean by IFA Management".  We got a stunning variety of answers, which boiled down to "what I do in my section".  After we had shared experiences, everyone agreed it was "my bit" and "your bit" and "their bit" combined.   It didn't take long to agree that we should be looking at:

•     which IFAs delivered quality business, didn't churn policyholders every couple of years, and were generally profitable to NPI

•     what management information was needed to identify and then manage them

•     what policy to adopt for IFA selection

•     how to go about dropping IFAs who didn't measure up

•     what changes to make in processes, and what was the scope of the change project required.

Debt reduction would be one outcome, but there were many other benefits to be had: improved business quality, reduced cost of sales, reduced cost of long term administration, general increase in profitability. Just concentrating on credit control would have treated one of the symptoms, but not cured the disease and missed the really important benefits.

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