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.”