Letter of Authority (LoA) response times are beginning to improve. Pension Lab’s latest LoA Performance Index (LPI) shows major providers improved their response times suggesting that, for some, inertia may be giving way to action.
One provider reduced its average response times by 45% due to a move away from mostly paper-based responses. Two others reduced response times by 33%. Only one provider’s performance remained flat compared to the previous quarter – but no tracked provider worsened.
These gains come despite LoA volumes rising 500% on Pension Lab’s LoA platform. Driven by adviser demand for greater efficiencies and security offered through digitisation, advancements like smart policy number routing helps eliminate delays.
Scott Phillips, CEO and founder of Pension Lab, says:
“LoAs have long been the forgotten corner of financial services – bogged down in painful delays and endless paper-chasing. But that’s changing.
“A year ago, we established the Fix LoA Action Group (FLAG) and the LoA Performance Index (LPI) to shine a spotlight on the issue. We’re now seeing efforts combined with practical innovation deliver results.
“But this is by no means ‘job done’. The broad industry average remains 7–14 working days, with some outliers still taking months. With LoA volumes up fivefold, we continue to be obsessed with shaving time off the process – through smart routing, fully digital journeys and ongoing collaboration with providers and platforms.”
Pension Lab is urging advice firms, providers, platforms, and tech vendors to join FLAG, an open industry group with over 65 organisations, working to accelerate adoption of LoA standards, reduce delays and eliminate unnecessary cost from the advice journey.
Scott Phillips, CEO and founder of Pension Lab.
