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‘Bancassurers are a growing threat’

Bancassurers remain a growing threat to advisers as the dominant force in distribution, warns Bankhall chief executive Peter Mann.

He told delegates that while IFAs still handle most life and pension business in the UK, their share has fallen while bancassurers’ share has risen.

Mann cited Datamonitor figures showing IFA market share has fallen from 70 per cent in 2005 to 66 per cent in 2006 compared with a rise from 14 to 18 per cent for single-tied bancassurers and 0 to 1 per cent for multi-tied bancassurers.

He said bancassurers are taking most market share on sales of Isas, protection products and investment bonds.

Mann said client segmentation is key to protecting against the threat of bank-based distribution. Contrary to Paul Bradshaw’s view, he said IFAs should concentrate on high-net-worth clients who are targeted less by bancassurers.

He said: “It is also about segmenting within firms. Firms large enough to have advisers within them – a mortgage adviser, a wealth manager, a savings and investment adviser – will be able to offer rounded advice to different client types.”

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