Winterthur Life is calling for the industry to wake up to its responsibilities to make product charges easier for consumers to understand.
Speaking at an industry conference in London this week, Winterthur Life UK director of strategic operations Neil Cantle called on the industry to recognise that one of the biggest problems it will face in the next few year is making its costs more transparent.
Cantle believes that although discussion over the menu proposals has brought the issue of fees versus commission back to the fore he thinks the industry is missing the main issue.
He says customers are becoming more discerning over what they will or will not pay for from financial services companies and will inevitably become more aggressive in challenging companies to explain exactly what services they are paying for.
Cantle said: “The industry must wake up to the fact that the client foots the bill and the value added to the product will be judged by the client. There will come a time when clients refuse to pay for those parts of the service that they do not value.”