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Pru plots business map

Prudential UK is launching a consultancy service to help financial intermediary businesses develop, with a particular focus on assisting firms move away from over-reliance on front-end commission.

PruConsulting is a free service aiming to help business owners map out a clear strat-egy to produce greater business efficiencies and develop profitable business models.

Business consultancy director Jeremy Hackett has hired six management consultants, some of whom have been IFAs. They include one consultant from Australia, who has experience of the moves away from front-end to renewal commission in the more developed Australian advisory market.

Having piloted PruConsulting in 2005, the firm found advisers are most concerned with issues surrounding remuneration and commission, profitability and the rise in compliance costs.

Hackett says insurers have been seen to be increasingly depersonalised and remote, with a decreasing rate of face-to-face contact with advisers.

It is hoped that the six consul- tants will be able to manage 15 firms at any one time. Business audits, collaborative workshops and business modelling are all available, typically over a 12-week period. Meetings are confidential and there is no cross-reference to the Pru’s sales team.

Hackett says: “The new regulatory regime has created opportunities for different business models. But we have seen that most are playing it safe because of advisers’ concerns with regulatory change and a growing sense of isolation.”

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