NSC
Survey Minimize
Are you a member of a Sales Association / Professional Body?


Submit Survey 

Print  

Professional Sales News

Current Articles | Archives | Search

20 December 2011

News - £2.8m fine for ‘High Risk’ commission driven staff


By Ben Turner @ 16:29 :: 1338 Views :: 0 Comments :: Article Rating
<< Back  l   

The FSA has fined Combined Insurance Company of America (CICA) £2.8m for poor trading practices that put customers at risk, according to reports in IFAonline.co.uk. CICA sold insurance policies via self employed contractors but was found to have failed to properly manage its sales processes.

CICA did not properly ensure its agents had the skills and knowledge to provide advice and focused on the number rather than the ability of its recruits, the regulator said. The insurer did not ensure its agents recorded all the relevant information when advising customers on insurance products, the FSA said.

The regulator also found the remuneration structure for the sales force, a commission-only structure, was high-risk as it placed emphasis on sales volumes rather than the quality of sales.

CICA did not take effective action against agents who had received complaints or broken company rules or properly monitor claims handling, the FSA said.
 
"Firms must ensure that protecting the interests of their customers is at the heart of every aspect of their business." Said the FSA.
  << Back Share/Save This Article:     Bookmark and Share
Comments
Only registered users may post comments.
 Minimize

LinkedIn_Logo30px.png

Twitter

Facebook

MHI
© Copyright 2009 TheSalesPro.co.uk | DNN Hosting & SEO Managed by Pure Systems | Terms Of Use | Privacy Statement