Management information

Good practice

A wide range of information is used to monitor the sales patterns of individual sales staff, analysing trends and causes, with particular attention paid to those staff selling the most products and other staff who may be at a higher risk of mis-selling.
Face-to-face sales conversations are monitored.
Non-advised sales are monitored to ensure that staff who are incentivised to sell do not give personal recommendations.
Incentives used by Appointed Representatives are approved.
Recognition that the risk of mis-selling may increase where remuneration is effectively 100% variable pay based on sales volumes.

Poor practice

MI does not take account of the specific features of a firm’s incentive scheme and does not identify trends or spikes in sales patterns.
MI is not available at individual staff level.
Firms selling insurance products do not review claim repudiation rates and the reasons for rejected claims.