Letter of Authority (LoA) response times are showing signs of improvement, according to the latest LoA Performance Index (LPI) from Pension Lab.
The data reveals that several major providers have reduced their turnaround times, suggesting that inertia may be giving way to action.
One provider cut its average response time by 45% after moving away from paper-based processing, while two others reduced times by 33%.
Only one provider’s performance remained flat compared with the previous quarter, and none worsened.
The improvements come despite LoA volumes on Pension Lab’s platform rising by 500%, fuelled by adviser demand for greater efficiency and the security benefits of digitisation.
New technology such as smart policy number routing has helped eliminate delays.
Scott Phillips, CEO and founder of Pension Lab, said: “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 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 industry average still sits at 7–14 working days, with some outliers taking months.
“With LoA volumes up fivefold, we remain 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 technology vendors to join FLAG, an open industry group of more than 65 organisations.
The group is working to speed up LoA processing, drive adoption of digital standards and remove unnecessary cost from the advice journey.
