FMA launches next stage of churn probe
In June, the FMA revealed the first results of its investigation into churn.
It said 200 of the 1100 advisers it had identified with more than 100 active life policies on their books met the criteria for having high estimated rates of replacement business.
That criteria were that at least 12% of an adviser’s policies lapsed and the adviser wrote at least 12% of policies as new business within one year, or at least 40 lapsed in a month and the adviser wrote 40 new policies in the same month.
The FMA said it had signaled with that report that it would be doing more work with those advisers.
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