Paradigm Protect, the directly authorised protection arm of Paradigm Mortgage Services, has launched a new collaboration with Defaqto to help advisers manage product switching processes more effectively and meet regulatory expectations under Consumer Duty.
The initiative comes as the Financial Conduct Authority increases scrutiny of product switching, identifying it as a high-risk area in its latest update (MS24/1.3) and warning that some rebroking practices can result in poor outcomes for consumers.
To support advisers, Paradigm Protect is providing free access to Defaqto’s CIC Compare software, which allows users to analyse and compare Critical Illness Cover (CIC) products dating back to 2009.
Using real insurer claims data, the tool enables advisers to demonstrate suitability and value when reviewing or replacing client protection policies.
The technology is being launched alongside new compliance service options from Paradigm Protect, aimed at helping firms formalise their internal switching procedures and audit file processes to ensure consistency and adherence to Consumer Duty standards.
Mike Allison, director of protection at Paradigm, said: “We wanted to support firms on the product switching journey because we recognise it is not only an area of regulatory focus but clearly one of risk to the client if the product they ultimately are recommended is inferior to their original one.
“With the increasing complexity surrounding Critical Illness conditions, we know by offering free access to this software, it will support advisers during research and suitability, and ultimately lead to the best possible outcomes for the consumer.”
He added that the initiative combines technology and governance: “Coupled with our compliance expertise, we will help firms develop a consistent procedure for reviewing and potentially replacing client CI contracts and supply an ongoing review of files for them once that procedure has been embedded into the firm’s process.
“We are mindful of the commercial pressures DA firms are under, and by offering the software at no cost – coupled with our compliance service – we are providing peace of mind to both advisers and clients alike.”
