Resolution is looking to introduce a direct simplified term insurance product through Friends Life.
In an interview with Money Marketing, Friends Provident managing director of UK individual business Graham Harvey says the direct route represents a bigger opportunity for simplified products than the adviser channel.
He says a simplified term product could work well within online comparison websites and the bancassurance and brandassurance markets. Harvey says: “In the IFA marketplace you see a more full-fat advice offering, where IFAs want to be able to make recommendations across the product range.
“But there are certain sectors of the market, such as the brandassurance market, where we already have relationships with the likes of Tesco, the AA and John Lewis, where I think a simplified proposition is more appropriate.”
Harvey says it is challenging to marry up the idea of a simplified product with whole of market advice.
He says: “We can see opportunities on the simplified side and more so with simplified non-advice but we will remain focused on the IFA marketplace as well.”
It is expected that the Resolution acquisitions of Friends Provident and Axa’s UK life bus- iness will come together under the umbrella brand of Friends Life this month.
Harvey says, under Friends Life, the core business areas will be corporate pensions and protection. A review is being carried out on the annuity business which is expected to conclude by the end of June.
Friends Life is set to pull back from the investment bond market, with the closure of Axa’s investment bond to new IFA business. The Friends Provident investment bond will stay open.
Harvey says: “We are much more focused on doing business with distributors where we feel we can earn adequate return rather than just going for volume.”