- Executive summary
- Introduction
- Provider reactions
- Market size
- Distribution channels
- Is a new business model needed?
- Is the government taking the right approach to plug the savings gap?
CHAPTER 1 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
CHAPTER 2 THE PROPOSALS
- Introduction
- Key findings
- Price cap - how will it work?
- Basic advice - how will it work?
- Why will basic advice be cheaper?
- Will the full stakeholder suite go ahead? The jury is still out
CHAPTER 3 MARKET REACTIONS TO THE STAKEHOLDER PROPOSALS
- Introduction
- Key findings
- Overall reaction is muted
- Large household names intend to sell the products but there are mixed
reactions from the smaller players
- Half of IFAs see little or no appeal for their client base
- Larger financial service players also have a low appetite for stakeholder
products
- Deposit account
- Unitized investment fund
- SIF
- SIF in the suite?
- Pension
- Child Trust Fund
- Smaller building societies have no appetite for stakeholder products
- Investment industry will not offer stakeholder products
- Providers and IFAs see little impact on sales
- Long time to profit for equity-based products
- High monthly premium level needed for profit
- Providers show lukewarm response to the increase in the price cap to 1.5%
- Little or no intention to spend increase in cap on increased commissions
- Industry prefers higher front-end charges
- Basic adviser not a threat to IFAs
- Few intented to employ basic advisers
- Industry voices concerns over basic advice sales process
- Jury still out on suitability of pensions and the SIF for basic advice
- Industry worried basic advice process will lead to mis-selling claims
- Most happy not to have a pre-scripted process
- Few disagreed on advisers limited role
- Industry agrees that a single product is best
CHAPTER 4 MARKET SIZE
- Size of the savings market- Government estimates
- Deloitte view
- Sensitivity testing
- FSA view
- Size of the savings market - Datamonitor view
- Market size for the deposit product
- Market size for the Child Trust Fund
- Market size for the medium term savings products
- Size of the stakeholder pension market-Government view
- Deloitte view
- FSA view
- Size of the stakeholder pension market - Datamonitor view
CHAPTER 5 DISTRIBUTION CHANNELS
- Assumptions underlying the cash estimates
- Assumptions underlying the unitized savings estimates
- Assumptions underlying the SIF estimates
- Assumptions underlying the pension estimates
- Assumptions underlying the Child Trust Fund estimates
CHAPTER 6 IS A NEW BUSINESS MODEL NEEDED TO MAKE STAKEHOLDER PRODUCTS WORK?
- Introduction
- Key findings
- Why do FSIs push back against outsourcing?
- Factors pushing towards outsourcing
- What will the position be?
CHAPTER 7 IS THE GOVERNMENT TAKING THE RIGHT APPROACH TO PLUG THE SAVINGS
GAP?
- Key findings
CHAPTER 8 APPENDIX
- Research methodology
- Datamonitor Financial Services Consulting
- Current publications
- Forthcoming publications
- Life & Pensions SPP Team
- How to contact experts in your industry
List of Tables
- Table 1: Estimated distribution channels for stakeholder products
- Table 2: FSA assumptions of salaries and training costs
- Table 3: FSA's estimates of total sales time
- Table 4: Estimated sales cost by channel
- Table 5: Outcome of basic advice compared to full advice
- Table 6: Breakdown of the Deloitte numbers of stakeholder savers
- Table 7: FSA numbers of stakeholder savers
- Table 8: Estimated market size using FSA assumptions
- Table 9: Estimated market size for stakeholder pensions using Deloitte
assumptions
- Table 10: Estimated market size for stakeholder pensions using FSA
assumptions
- Table 11: Estimated distribution channels for stakeholder products
- Table 12: Total equity based saving market 2000-2003
- Table 13: The total unit-linked life market 2000-2003
- Table 14: With-profits products as a share of the total life related
savings market 2000-2003
List of Figures
- Figure 1: IFAs see the new stakeholder products having little impact on
their business
- Figure 2: Insurers and banks believe the introduction will have little or
no impact on their business
- Figure 3: The high street banks will sell the stakeholder deposit product
- Figure 4: Providers have more appetite for the unitized fund
- Figure 5: With-profits bonds have collapsed since 2000
- Figure 6: Customers are open to persuasion on with-profits funds
- Figure 7: Half of insurers will offer the new SIF product
- Figure 8: A third of insurers are not convinced SIF should be a
stakeholder product
- Figure 9: Pensions are by far the most popular product
- Figure 10: Mixed views on the CTF
- Figure 11: IFAs see little change as a result of stakeholder products
- Figure 12: Providers also believe the new stakeholder products will do
little to generate significant new business
- Figure 13: Providers see a 15 year horizon for profitability
- Figure 14: No IFA consensus on the level of premium needed to make
stakeholderworthwhile
- Figure 15: Majority see the increased price cap having a small positive
impact on their business
- Figure 16: Few expect to pass on the price cap increase to distributors
- Figure 17: 40% of IFAs are concerned about basic advisers
- Figure 18: Few providers think basic advisers will be a threat to the IFA
channel
- Figure 19: Less than a third of IFAs are aged under 40
- Figure 20: Pensions and SIF not suitable for sales by a basic adviser with
no pre-scripted process
- Figure 21: Most are happy with the proposal to allow firms to design their
own sales process
- Figure 22: What is the biggest threat to the bancassurance model that you
employ?
|
Related Report
|
View Cart
