View more on these topics

IFAs angry as Standard Life discounts direct business

Standard Life has been accused of shooting itself in the foot by offering cheaper life policies to direct customers.

The company has been slammed by IFAs for offering discounted life cover through its telesales channel and competing on price with supermarkets.

A male non-smoker aged 30 applying for a 25-year level term policy for 200,000 would pay 11.78 a month by ringing Standard Life direct.

The Exchange quotes 13.38 for the same case and pension term assurance products are also more expensive if bought through the portal.

At Standard’s first results briefing in September, UK chief executive Trevor Matthews said it would no longer compete on price but would focus on quality due to declining protection sales.

Lifesearch head of protection strategy Kevin Carr says: “This is a blatant contradict- ion as Standard Life is heavily dependent on its IFA book. It is shooting itself in the foot.”

CBK principal Peter Chadborn says: “I hope this does not signal a change of direction where it focuses too much on alternative distribution channels to the detriment of IFAs.”

Standard Life protection marketing manager Mick James says: “This came from customers saying they wanted our product but could buy it cheaper from Tesco. These customers were not seeking advice so why wouldn’t we offer them a better deal? We are not setting out to compete with the intermediary market, we are competing with direct providers.”

Recommended

Pru axes jobs as broker sales team is restructured

Prudential is restructuring its broker sales team. It says 60 positions will be axed while 30 different roles will be created in a move that will see the total numbers in its intermediary sales team cut from 430 to 400. Pru’s sales teams will be aligned geographically into North, South, London and Midlands regions. The […]

The blame game

Every week, I try to write about an issue that strikes a chord with at least some readers of Money Marketing. One way to judge whether I have succeeded is to read the emails you send me in response to my comments.

Kiddie quits Barings for ABN Amro role

David Kiddie has unexpectedly left Barings, where he was head of global equities, to take over as chief investment officer at ABN Amro Asset Management. Barings fund manager Tim Scholefield will step up to replace Kiddie just six weeks after joining the fund company. Scholefield will continue to run the £28m global growth fund. Kiddie […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment