The IFA channel will dominate distribution in the early years of a
depolarised environment but will lose market share to bancassurers and
e-commerce over time, a new survey suggests.
IFAs are the preferred advice channel for 41 per cent of higher-earning UK
adults, with another 13 per cent saying they would approach a multi-tied
adviser and 22 per cent saying they would consult their bank on its product
range, according to the Mori survey for IBM.
The survey gives a ringing endorsement for face-to-face advice from 80 per
cent of respondents while only 9 per cent would want to receive advice from
a qualified adviser based on a phone call.
But the research sounds a warning for the future with 13 per cent of
30-44-year-olds prepared to get advice on the web compared with just 2 per
cent in the 55-plus age group.
The research suggests bancassurers will do well under the twin effects of
depolarisation and new technology.
Mori questioned 435 adults aged 30 or over with an annual income of
£25,000 or more.
IBM global services insurance principal David Taylor says: “The warning
sign is that those under-45s, who should be tomorrow's IFA client, are not
as loyal. But if I was a bank at the moment I would be rubbing my hands
with glee and chasing the FSA on polarisation.”
Berry Birch & Noble group marketing director Stephen Ingledew says: “When
people get to a complicated situation in life, it is so complex that they
will want to go and get advice.”