View more on these topics

Clients round the world don’t want to pay by fee

An international study has found that fewer than 10 per cent of consumers are willing to pay for advice on insurance, mortgages and investments.

The World Insurance Report by Capgemini Financial Services surveyed more than 11,000 customers in 10 countries.

Only 8 per cent say they are willing to pay for advice on insurance policies and the only instance in which more than 10 per cent say they would pay for advice is on pensions at 13 per cent. In general, more higher-income customers are willing to pay for advice on insurance policies.

The report found that the US and the UK stand out from other countries because they distribute a much higher share of insurance policies through the internet and over the phone.

It also found that most distribution networks are at risk as consumers are increasingly turning to the internet to buy policies.

However, multi-tied agents, brokers and IFAs are predicted to gain market share, with banks, tied agents and mobile salesforces losing out.

CFS lab manager Benjamin Beauvalot says: “Apart from the internet, advisers were predicted to be the other winner of market share in the future but they were given weak scorings on brand and trust, so this an area that they should focus on.

“The way in which the market is changing is ultimately threatening the way that traditional insurers are working. Insurers risk losing customers if they do not start selling through multiple distributors.”

Recommended

Tribunal casts out FSA evidence against broker

The Financial Services and Markets Tribunal has dismissed evidence that the FSA gained against a broker in an interview where he was not allowed legal representation or access to relevant business documents.In November 2007, the FSA found that LA Mortgage Services broker Norman McIntosh had lied on his application form for FSA authorisation. He subsequently […]

Sesame survives the sell-off

Sesame will stay in the Friends Provident fold as it gives the insurer a good insight into the adviser market.As part of its strategic review, Friends is to sell high-net-worth IFA firm Pantheon but will keep Sesame. Friends bought the two firms last May, paying £75m for Sesame and £33m for Pantheon.The life office says […]

Repossessions in 2007 10 per cent lower than expected

The number of repossessions in 2007 was 10 per cent lower than the Council of Mortgage Lenders’ original forecast.The association says that at 0.23 per cent, the repossession rate was less than half the rate experienced throughout the first half of the 1990s. There were 13,500 repossessions in the second half of 2007, which was […]

The Downsizing Delusion: Why relying exclusively on your home to fund your retirement may end in tears

By Steve Webb, director of policy The British obsession with homeownership can have dangerous consequences. A recent survey by Barings¹ found that up to three million people of working age were planning to rely wholly on the value of their home to fund their retirement. We are not talking about people investing in buy-to-let or […]

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