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IFAs take more term sales at expense of bancassurers

IFAs increased their share of the term insurance market at the expense of bancassurers last year, according to the latest sales figures from reinsurer GE Frankona.

Overall, the market for term increased by 28 per cent year on year to 1.35 million policies from 1.05 million policies in 2000.

For level term, IFAs strengthened their market position from 37 per cent in 2000 to 40 per cent in 2001 while bancassurers lost 6 per cent of the market, with a drop to 29 per cent.

The picture was much the same for decreasing term, where IFAs increased their market share by 8 per cent to 44 per cent from 36 per cent in 2000 compared with the bancassurers who lost 6 per cent, with a fall to 28 per cent.

The remainder of the distribution for level and decreasing term insurance was made up by direct sales or execution-only business.

The market was dominated by the big players, with the top 10 providers controlling 71 per cent of sales.

Norwich Union topped the list, followed by Legal & General and Scottish Widows.

Level term made up the majority of the market,with 53 per cent of sales.

GE Frankona marketing analyst Louise Roche says: “2001 was another good year for the term insurance market, with almost 1.4 million new policies sold.

“This was the biggest increase that we have seen over the last five years and a continuation in the trend of increasing sales.”

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