Of those providers, 57 per cent state this is due to the amount of documentation and information consumers are given within a sale and 43 per cent say consumers don’t understand changes in regulation.
According to the report, Focus Quotient, a key challenge facing providers is maintaining a cost effective business model with the added expense of supporting changing legislation.
Focus Solutions Group chief executive officer Richard Stevenson says: “Regulation is a constant in the financial services industry and as we have heard from providers unsurprisingly it is having an impact on working practices, affecting consumer’s confidence in the marketplace.
“The FSA publishes up to ten consultation pieces a year and to keep up with demand, insurers require smarter technological solutions that enable them to future proof their sales systems against changes in legislation. Focus’ front office solutions are leading the way in developing processes that can adhere to environmental and regulatory changes.”