The introduction of stakeholder pensions could have a profound effect on the insurance sector that is very different from its expectations, according KPMG Consulting.
The consultants carried out extensive research into who will be the winner and losers after the introduction of stakeholder. It found the winners are likely to be those companies who possess a positive attitude to change and are early in adapting their organisation to meet it.
KPMG Consulting's head of retail insurance Brendan Meehan says: "Companies will need access to capital to invest in developing new competencies.
"Unfortunately, very few organisations are likely to be able to grow these capabilities incrementally from their existing organisation structures, systems or culture, a step change is required.
"Providers are facing a race to achieve the necessary economics and the four or five that are first to make the necessary changes will grab the market for new and existing portfolio's."