View more on these topics

‘New business focus mars the industry’

The emphasis that product providers place on new business is damaging the industry and is detrimental to consumers, according to industry experts.

Over 30 senior executives from UK life companies and other financial services met at a Watson Wyatt debating forum recently to discuss the proposition, “This house believes that the focus on new business sales is damaging to our industry and hence is detrimental to consumers”.

Fifty three per cent of the audience were in favour of the motion before the debate and this rose to 59 per cent in favour after the discussion.

Ninety-one per cent thought that new consumers were considered more important and given a higher priority than existing customers while the remaining 9 per cent believed existing and new customers were treated equally.

None of the attendees thought that existing customers were considered to be more important than new customers.

When asked for their views on treating customers fairly, only 30 per cent said it would be a positive contribution to the industry and 22 per cent thought it would have an adverse impact.

Watson Wyatt senior strategy consultant Mike Williams says: “It is of considerable concern that so many in the industry remain sceptical about the TCF initiative. We held a debating forum in April 2005 where 46 per cent of the audience believed that TCF would help to restore faith in the financial services industry. Experience over the intervening 18 months has, if anything, dampened this already limited enthusiasm.”

Recommended

A change of tack

With rebates largely unchanged, why are some people contracting back in??

Debt issues cloud the outlook

It is the time of year when investment managers start to finalise their views of the next year and there is an almost universal view that there will be a perfect soft landing for the economy next year, with the minimum of disruption.Markets are welcoming a slowdown in activity as if it were normal to […]

Value does not depend on how we are paid

I have been reading the ongoing debate about fees and commission which has been reignited by Peter Hargreaves. Getting hung up on whether one is better than the other clouds the more fundamental issue of offering fair value to the customer. Offering fair value to the customer is not dependent on how we are paid […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com