Managing director of sales and marketing David Thompson said: “Providers now have to change their model because it just does not work. They have to change their model to have much less reliance on capital and that is not just because of the economic climate, it is sheer financials.
“They have to change their models to genuinely support advisers by offering real value-added services and they have to change their model to distribute products and services where they can make a margin and that may mean they have to take some tough decisions.”
Thompson said Axa Winterthur is looking at scrapping or downscaling face-to-face support for advisers in favour of telephone help to cut costs.
He said: “We are looking at the trade-off between face-to-face distribution and telephone distribution for advisers because telephone distribution frankly is far more cost-effective.”