Marvin OnumonuLetter of authority (LoA) response times have started to improve, with major providers cutting delays, according to Pension Lab data.
The LoA Performance Index found one provider reduced its average response times by 45% after moving away from paper-based responses.
Two other providers cut their response times by 33%.
Only one provider saw no change compared to the previous quarter, and none got worse.
These improvements came even though LoA volumes on Pension Lab’s platform rose by 500%.
Increased adviser demand for digitisation and advances like smart policy number routing have helped to remove delays.
Scott Phillips (pictured), 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 LoA Performance Index (LPI) to shine a spotlight on the issue.
“We’re now seeing efforts combined with practical innovation deliver results.”
Phillips added: “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.”
