Only four product providers get regular business from more than a third of the IFAs they deal with, reveals new research by Henry Samuels Marketing Services.
The study, involving 300 IFAs, shows that many providers deal with up to 95 per cent of the 22,000-plus IFAs in the market and have a large number of unproductive IFAs on their books.
The research looks at insurers' “penetration efficiency” worked out by dividing the percentage of IFAs who “mainly deal” with a certain provider by the total number of IFAs they have contact with.
Topping the list is Norwich Union at 59 per cent, followed by Standard Life at 46 per cent, Legal & General at 39 per cent and Scottish Provident at 33 per cent.
At the bottom of the table is GE Life and Scottish Mutual at 6 per cent each, with Zurich at 8 per cent and Prudential at 9 per cent.
HSMS chief executive Henry Samuels says product providers have been trying to get as many IFAs on board as they can but then struggle to service them all, particularly with falling salesforces. He suggests that the only way that product providers can service the large IFA group is by increasing reliance on online business.
Samuels says: “In reality, there are those IFAs who have contact and receive support from many product providers, yet only give a significant volume of their business to a restricted group of providers.”
Norwich Union head of media relations James Evans says: “We are focused on providing advisers with the products and support they need to advise their clients in today's rapidly changing marketplace.”