Churn debate: Reduce conflicts

Pinnancle Life chief executive Michelle van Gaalen says it is one of the companies caught up in the FMA’s data trawl exercise around churn, but it’s not an issue for the company.

Pinnacle runs a direct, online distribution model and it does have issues with churn. While the bulk of its business is online direct to consumers it does have relationships with 17 firms of financial advisers.

Van Gaalen says Pinnacle Life has one of the best persistency rates in the market and doesn’t see a lot of churn. While she wouldn’t disclose the rate it is mentioned as a positive factor in AM Best’s rating report.

“The (bb+) rating affirmations reflect Pinnacle Life's low product risk profile, direct distribution capabilities and a lapse ratio consistently below the market average,” AM Best says.