Are other life offices likely to follow Clerical Medical's lead and withdraw from the group pension market because of admin overload?
“Yes, but it will depend on how the market progresses over the weeks until the stakeholder deadline, which could be mayhem.” Roger Prest, Byrne Williams “I'm not sure. Clerical seemed to be in the thick of it, whereas other offices seem able to cope with increased business.” Simon Wells, Phoenix Financial Services “Very possibly. The 1 per cent cap means many will find staying in the market unsustainable, meaning probably only two big offices will remain.” Tony Pentland, Pentland Financial Planning “Possibly. If you think of the fact that not many employers have done anything about stakeholder yet, the run up to October will have to be managed efficiently.” Michael Alderson, Personal Investment Management “Yes. It is pretty clear some offices just cannot cope. There will be a lot of them not just closing shop but pulling out of the market.” Steven Pett, Director & Staff Benefit Services “Yes. Clerical Medical was very active in the group pension market and, if it has taken this action, it is very possible it could be seen as a lead.” Christopher Grogan, Grogan & Co “Yes. People like Norwich Union take for ever processing new business, so I can imagine others having similar problems.” Steven White, Harrison White Financial Services “Yes. They tell me they will not but I have suspicions others will follow Clerical Medical's lead.”Paul Leach, Paul Leach & Co yes 87%
NOt SURE 13%