View more on these topics

Lack of advisers hitting market

The decline in the number of advisers selling protection products could halt product development and market progression, warns Tenet.

The firm’s distribution development director Keith Richards said one of the biggest issues facing the market was getting more IFAs to engage in selling protection products.

He said: “How do we get distribution back in front of consumers? How do we put protection back so it is more straightforward, more simple and is rewarding enough to start advising for?

“It is just not being sold by enough people in volume, shape or size. There are not enough of us who see protection as a profitable group, given the amount of time that needs to be invested and the resources to do it properly.

“There are IFAs that would rather look after clients north of £200,000 in their retirement to invest than someone that needs some good protection business which, arguably, takes just as long.”

Lifesearch head of protection strategy Kevin Carr said a degree of the IFA community could try harder when it comes to protection.

He said: “Protection is overlooked by a large part of the adviser market, including the high street.

“There is a general concern out there to look after what you have got, which is very sensible, but IFAs and mortgage brokers cannot sell much else in the current environment so they are going back to basics.”

Carr also criticised the prolonged application process for standing in the way of advisers.

He said: “You have got a brick wall that our industry puts in the way of selling protection, whether it is six months’ underwriting or a 36-page application.

“Generally speaking, our industry does not make it easy for us to sell this stuff.”

Recommended

Consistency is central to TCF

Adviser firms must treat their clients as individuals while providing a uniform service to meet the FSA’s treating customers fairly requirements, says BDO Stoy Hayward.

Decisive action is needed now

In recent months, it has become almost de rigueur to chastise some media commentators for their downbeat reporting of the economy. But I am afraid that we are now at a point where the quicker it is universally accepted that using terminology such as the dreaded R – recession and redundancy is quite simply being in tune with another R word – reality.

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment