If it's not about integrity, then...

If this KevBlog entry sounds a bit preachy, my apologies, but events last week have got me quite angry.  Why I should be irritated by this, I am not sure, as the perpetrator (a well known protection insurer) is far from unique in adopting this kind of approach.

It all started with the non-payment of commission.  One of our Member firms had not received payment, queried it with the insurer and were told "We paid it to your Network on the 24th June".  Quite rightly, our Member queried the matter with us - why had they not been paid when the insurer has made payment several weeks previously.  A good question, only not only had we not received the monies in question, we also had not received the commission statement.

Our own Administrator, who should win some kind of award for his persistency in sorting out life-office maladministration, confirmed the details by email to both our Member and the insurer in question, whose dim, murky name should forever be consigned to the annals of shame.

This triggered a phone call from the insurer, who thought they were talking to our Member.  And here I paraphrase.  Thinking that he was talking about us to our Member firm, the representative said, "we have definitely paid this commission to your Network.  They must be having a laugh".  Get the clear implication of this?

Our Administrator revealed to the speaker that he was actually addressing the laughing Network in question, at which point he appeared covered in confusion.  And for good reason.  No commission had actually been paid at all - due to an offset arising out of a clawback.  For some obscure reason, or perhaps due to sheer idiocy, the insurer felt that this would be a good time not to issue a statement to alert us to the matter.

Thus, a combination of brainless procedure, followed by misinformation is topped off by a potentially damaging claim against the one party which appeared to have access to accurate data.  Thankfully, our Member firm knows us well, and (I hope) has reasonable confidence in our standards.  Which left me thinking about integrity.  If you do not have it, what else do you have to offer in the arena of financial planning?