View more on these topics

Clerical bids to double share

Clerical Medical is unveiling the first stage of a radical five-year plan to nearly double its IFA life and pension market share by revamping its pension policies.

The life office is aiming to boost its IFA market share to 8 per cent from 4.5 per cent. It claims it will achieve this by overhauling its products and admin service.

Clerical Medical will unveil a new pension contract in January as the first stage of the plan.

The new pension policy has three options which include allowing IFAs to choose a contract with either a high early surrender value or high maturity value. IFAs can also trade off allocation rates to reduce any exit charges.

The Maturity Plus option has an allocation rate of 102 per cent with a standard exit charge. The Balanced option gives a 101 per cent allocation rate with reduced exit penalties. The Flexibility option has an allocation rate of 100 per cent with no exit charges.

All options have a 1 per cent fund charge with a 0.8 per cent bonus after an agreed period. Plan fee is £3.10 a month.

The policy is being launched after research to find what IFAs want from a pension policy.

Clerical says 66 per cent of IFAs want a policy with a high maturity value. But over one-third require a contract which offers a high early surrender value or an average maturity value and an average transfer value.

Clerical is also launching a market research service to help IFAs find ways to boost their business. Spokesman Tony Bloomer says: "The flexibility of the product is key, as is the need for flexible support. We are a traditional life office at the moment and that must change."

Recommended

PIA expels Essex broker

The PIA has expelled an Essex broker for a number of compliance failures revealed after a monitoring visit. The PIA says Ingatestone Mortgage Shop of High Street, Ingatestone failed to organise and control its internal affairs and did not keep proper records.

Briefs

1. Which of the following are correct in respect of the date January 31, 1998? a: It is a deadline for filing tax returns for 1996/97 b: Balancing payments will be due for tax year 1996/97 c: First payments on account will be due for tax year 1997/98 d: First instalment of assessment for 1997/98 […]

Lloyds-TSB backs Five Nations

Lloyds-TSB is to sponsor the rugby union Five Nations Championship and 1999 Rugby World Cup in a £12m deal to boost its brand profile. The three-year deal includes the first-ever title sponsorship of the 1999 and 2000 Five Nations Championships, as well as backing for England&#39s, Wales&#39 and Ireland&#39s home internationals in the 1998 competition. […]

Executive stress

I am a 60-year-old director of a company. My executive pension plan has just matured. I noticed a performance comparison in the financial press where my insurance company shows what returns it would have given on a policy similar to mine. The returns it quotes are much more than I got. In fact, I paid […]

Retirement - thumbnail

A downhill stroll?

The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment