View more on these topics

Equitable demise has put focus on with-profits sales

Norwich Union sales and marketing director Peter Hales

“Looking back over 2000, one of the most significant issues had been the closure of Equitable to new business and the issues spinning off from it, particularly with-profits business.

“As a result, the industry is going to have to spend a lot more time on presenting with-profits with clarity. Regulatory attention is now firmly fixed on with-profits business because of Equitable and because there has been a boom in with-profits sales.

“We have seen the big getting bigger, not just us, but with many other providers consolidating. We have also seen the takeover of Scottish Widows by Lloyds TSB, Royal London buying Scottish Life, Royal Bank of Scotland taking over NatWest, Abbey Life sold to Zurich Financial Services and Friends Provident announcing plans to demutualise while Standard Life repelled the carpetbaggers.

“The consolidation has been accelerated by stakeholder and the intense competition on margins and price. Large companies have been competing for pre-stakeholder business, pushing smaller life offices on to the fringe through the intensity of the competition.

“The FSA review of polarisation means industry structure has been a major issue. But the industry has not seen it as the end of the world and the IFA sector has emerged this year as a strong force.”

Recommended

Nationwide tops public relations survey

Nationwide received more positive comment in the UK national press for the third month in succession and for the fifth month out of six. Nationwide&#39s surprise 0.2 per cent mortgage rate cut meant that they scored more than twice as much as the next placed company, fund managers Fidelity. Its mini cash Isa, credit card, […]

Investment-linked annuities give retirees greater choice

Retirees&#39 investment choice has broadened significantly with a tripling of the number of products available in the past two years. The trend for diversification away from the standard annuity is growing among annuity providers. The Annuity Bureau estimates that investment-linked annuities now account for one fifth of the total annuity market, up from five per […]

Aifa urges extreme care on advice

Aifa has issued an urgent statement alerting its members to take extreme care when advising Equitable Life clients of their options. As part of its newsflash bulletin service, it has emailed members, warning: “We do not believe that anybody is currently in a position to give clear guidance in such a sensitive and complex situation.” […]

Woolwich shakes up IFA management

The Woolwich has announced a new management structure for its IFA operations, Woolwich Independent Financial Advisory Services and Sedgwick Independent Financial Consultants. Dawn Johnson becomes Woolwich director, IFA operations. Johnson was previously managing director of Woolwich Independent Financial Advisory Services. Chris Regan will fill Johnson&#39s former role. Regan was previously operations director of Woolwich Independent […]

Graphic content – December; the countries most exposed to a rise in protectionism

President-elect Trump has suggested withdrawing from the North American Free Trade Agreement (NAFTA) and ending negotiations over the Trans-Pacific Partnership (TPP), albeit there is considerable uncertainty over what he will, or even can, do. If one of the main consequences of the election of Donald Trump is US protectionism, it’s worth considering who stands to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment