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Platforms fail to deal with mass-market needs

KPMG claims insurers and technology providers’ platform propositions remain complicated and fail to provide a service that is suitable for mass-market customers.

A number of high-profile providers, including Aegon, Axa, Aviva and Standard Life have launched into the platform market in recent years.

At the Association of British Insurers biennial conference, KPMG head of insurance performance and technology Paul Bishop said: “One of the fundamental issues for the savings industry is that it has developed around a model based on relatively high value and high cost clients and complex equity-based products.

“If you look at all the current developments within the industry, such as platforms, they are still going down that route because they are complicated and people generally still need to pay for advice. Complexity is very much still flowing through platforms at the moment.

“For the relatively wealthy, that model works well but the issue the industry has today is that, to deal with the needs of mass-market customers, it is going to need to create a new model.”

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