14 June 2021
Quotation activity edges back up towards pre-pandemic levels, while take-up rates fall to lowest level since Q1 2016
- Despite the imposition of a third national lockdown at the start of January 2021, transfer
quotation rates rose 17% from Q4 2020 to Q1 2021, to 136 quotations per 10,000 deferred
- This compares to a quarterly average of 145 quotations per 10,000 deferred members in the year to 31 March 2020, before transfer activity dropped off sharply with the arrival of the Covid-19 epidemic.
- Of the 433 quotations issued in Q3 2020 – the most recent quarter with complete payment
data – 19% (82) were subsequently paid out. This represents a decrease from 26% in the previous quarter and is the lowest take-up rate seen since Q1 2016.
- These 82 payments correspond to 0.25% of all deferred members – the lowest payment rate
since Q2 2016. The reduction in payment activity may be linked to the ban on contingent
charging by financial advisers which came into effect on 1 October 2020 and is considered in the next section.