View more on these topics

&#39Efficient admin systems could save life offices £1.5bn a year&#39

Life offices could save up to £1.5bn each year if they adopted more efficient administration and back-office systems, says software provider Marlborough Stirling.

An analysis by the company of the FSA&#39s 2002 returns reveals that life offices are spending more than £30 a year to administer each individual policy on their books, up from£28 in 2001 and £25.50 in 2000.

It says that companies should be aiming to cut costs to around half of this amount.

Marlborough says if companies could cut out some of the waste in their admin procedures, the Treasury&#39s proposed 1 per cent price cap for its suite of stakeholder products would not seem nearly so imposing.

It says life offices and financial services providers generally need a major overhaul of back-office systems, with few taking advantage of systems based on modern technology.

Head of life & pension propositions Brian Please says: “As charge capping becomes more prevalent, companies must become more efficient in all parts of their business, policy administration in particular, or risk losing their competitive edge.”

Direct Life & Pensions sales & marketing director Richard Verdin says: “I would expect Marlborough Stirling to say something like that as it is in their interests to do so. Most intermediaries would look at the variety of systems that are available from life offices and conclude that they only confuse the marketplace.”

Recommended

Temple founder gets £0.5m in deal

RJ Temple founder Richard Temple has received a £506,000 fixed payment as part of the £1m Lighthouse rescue package. Money Marketing has learned that the repayment of the sum was part of the deal for the collapsed IFA. The settlement was made for the goodwill and assets of RJT before the rest of the business […]

&#3911% of equity investments are for school fees&#39

Eleven per cent of people are investing in equities to save for child-related costs such as school fees. Research from Fidelity shows that the rising costs of university and private education are leading parents to save so their children do not leave university with a burden of debt. Fidelity says the average fees for a […]

Second issue of Keydata growth plan

Keydata is launching the second issue of its growth-builder plan offering 100 per cent participation in any growth in the FTSE 100 over six years. The plan, which locks in each 20 per cent rise in the index, will return capital in full unless the FTSE falls by more than 50 per cent during the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com