Advisers to quit protection sales in droves, survey finds
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Fifty-eight per cent of protection firms predict there will be far fewer intermediaries selling protection products by 2020, according to research undertaken by the protection review.
The survey of 36 life offices, reinsurers, advisers and consultancy firms found that 58 per cent said the number of intermediaries selling protection would be “much lower” than in 2010 while 26 per cent said “lower, but only just”.
Some 11 per cent of those questioned thought there would be slightly more intermediaries selling protection while none thought there would be a much higher number entering the protection space.
When asked about the future of commission, over 80 per cent were confident that it would still remain on protection products in 2020 but 60 per cent thought it would take a different form.
Facts & Figures Financial Planners managing director Simon Webster says: “If protection is still sold on a commission basis in 10 years’, we may well see IFAs setting up subsidiary firms to continue to offer protection. The interesting thing will be what intermediaries in that space are called in 10 years.”
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Readers' comments (2)
Anonymous | 21 May 2010 1:53 pm
I am not surprised - the hassle for us IFA's in the whole process of AMRA's, GPR's and the huge clawback liability is making the market almost untenable.
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Anonymous | 25 May 2010 4:13 pm
Good to see that the absence of any real evidence doesn't stop the press publishing stories.
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