Table of Contents
- DATAMONITOR VIEW
- ANALYSIS
- The financial advice survey tracks the main changes inadvisor opinion
each quarter
- Financial advisors have a particularly positive viewtowards Standard
Life, Legal & General, Aviva and Scottish Equitableas life companies
- Financial advisors are dealing less with Skandia becauseits products
don' t match the business models of IFAs
- Friends Provident revealed a £46m loss in 2007, and hasmade job cuts,
lost its finance director and is at the center of takeoverspeculation
- A small percentage of IFAs will not work with someinsurance providers
because of a negative experience in the past
- Aviva and Abbey are viewed more negatively by IFAs thanother life
companies
- Financial advisors have a particularly positive viewtowards Fidelity,
Invesco and Jupiter as mutual fund providers.
- Invesco Perpetual is one of the largest independent assetmanagement
companies in the UK
- Fidelity is popular but recent research shows their UKfund
underperforming
- The Jupiter Group has received more than 120 awards overthe past four
years
- Some large life companies have low online penetration butothers are
winning
- The providers most used for online services are Legal& General,
Norwich Union and Friends Provident
- Legal & General, Norwich Union and Friends Providentare more
popular as providers of online services because they are moreactively
promoting their online services
- IFAs favor applications over enquiries when conductingonline business
- The majority of IFAs conduct less than 25% of their newbusiness
through online systems.
- The internet is widely used by UK households to enquireabout financial
services
- Bond and protection applications are the most favoredonline business
for IFAs
- Bonds applications are less dependent on individual datacapture
- IFAs do not apply online for bonds because they find iteasier to
complete applications offline
- Some types of protection application are more formulaicand therefore
more easily conducted online
- Just 37% of all pensions applications made by IFAs overthe last six
months have been online
- SIPP products and their customers are more suited toonline
applications than standard pensions
- Technology and communications are pivotal in thedevelopment of the
SIPP market
- Towards a more simplified future UK pension market?
- New business tracking enquiries are more popular onlinethan policy
enquiries
- IFAs are still not convinced that their new businesstracking enquiries
can be answered online
- Policy enquiries are the least favored online activitywith IFAs
believing that they can get better quality information over thetelephone
- IFAs do not show an interest in support services using newtechnology
- Unipass certificates are important tools
- IFAs conduct less that 25% of their new policy businessonline and prefer
to deal directly with providers
- IFAs are more interested in working directly withproviders rather than
through fund supermarkets and wrap platforms
- Wrap platforms need to have better functionality for IFAsto use them
more
- Providers need to give more online support to IFAs in achallenging
market
- Wraps and fund supermarkets are a convenient way for IFAsto manage
their client business
- Fund supermarkets already operate some elements of wrap
- Life and pensions providers have the scale to launch anddevelop Wrap
- Wrap should be viewed and sold as a new distributionchannel rather
than as a product
- Providers or fund supermarkets offering Wrap technologyneed to pay
attention to the needs of IFAs for successful distribution inthe
intermediary market
- APPENDIX
- Definitions
- Bibliography
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Which of the following statements bestdescribes your attitude
to these providers?
- Table 2: Which of the following statements bestdescribes your attitude
to these insurers? Q1 2007
- Table 3: Which of the following statements bestdescribes your attitude
to these mutual fund providers?
- Table 4: Which of the following statements bestdescribes your attitude
to these mutual fund providers? Q1 2007
- Table 5: Have you made any of the following applications/ enquiries
offline or online in the last 6 months?
- Table 6: Have you have made a new business trackingenquiry offline
instead of online in the last 6 months?
- Table 7: Why do you make new business tracking enquiriesoffline instead
of online?
- Table 8: Have you made a policy enquiry offline insteadof online in the
last 6 months?
- Table 9: Why have you made policy enquiries offlineinstead of online in
the last 6 months?
- Table 10: What type of organization do you work for? Q42007
- Table 11: What is the average case size of business youdeal with?
- Table 12: What proportion of your new policy business doyou conduct
through the following online systems?
- Table 13: Have you made a bond application offlineinstead of online in
the last six months?
- Table 14: If you have made an offline bond applicationin the last 6
months, why did you choose to make the bond applicationoffline?
- Table 15: Have you made a protection application offlineinstead of
online in the last 6 months?
- Table 16: If you made a protection application offlinerather than online
in the last six months, why did you choose to make theprotection application
offline rather than online?
- Table 17: Have you made a pension application offlineinstead of online
in the last 6 months?
- Table 18: If you made a pension application offlinerather than online in
the last 6 months, why did you choose to make theprotection application
offline rather than online?
- Table 19: SIPP new business is forecast to continue toincrease in the
pensions market
- Table 20: ¥Were any of the offline pension applicationsyou made in the
last 6 months for SIPPs? (Base: those IFAs who have madean offline pension
application in the last 6 months.)
- Table 21: How interested would you be in any of theseonline services
from a product provider?
- Table 22: If you conduct less than 25% of your businessthorough a wrap
platform, which online services attract you to a wrapplatform?
- Table 23: To what extent do you agree with eachstatement?
- List of Figures
- Figure 1: Financial Advisors have a particularlyfavorable attitude
towards Standard Life and Legal & General asinsurance product providers
- Figure 2: Some life companies are less highly regardedthan in Q1 2007
- Figure 3: A small percentage of IFAs will not work withsome insurance
providers because of a negative experience in the past
- Figure 4: Financial advisors are most impressed byFidelity, Invesco and
Jupiter as mutual fund providers
- Figure 5: A small percentage of IFAs will not work withsome mutual fund
providers because of a negative experience in the past
- Figure 6: Most mutual fund providers are more highlyregarded than in Q1
2007
- Figure 7: Some large life companies have low onlinepenetration although
others are winning
- Figure 8: Bond applications is the favored type ofonline business for
IFAs, with half having made online bond applicationsduring the last six
months
- Figure 9: The IFA industry is characterized principallyby single outlets
- Figure 10: The IFA industry is characterized principallyby case sizes of
less than £5,000
- Figure 11: The majority of IFAs conduct less than 25% oftheir new
business through online systems
- Figure 12: Half of all bond applications by IFAs aremade online
- Figure 13: IFAs make bond applications offline becausethey find it
easier than online
- Figure 14: Nearly half of all protection applicationsmade by IFAs over
the last six months have been online
- Figure 15: IFAs make protection applications offlinebecause they find it
easier than online
- Figure 16: 37% of IFAs have made an online pensionapplication in the
last six months
- Figure 17: IFAs find pension applications easier tocomplete offline
- Figure 18: SIPP new business is growing and well suitedto new technology
- Figure 19: 40% of IFAs have made an online SIPPapplication in the last
six months
- Figure 20: IFAs prefer to conduct new business trackingenquiries offline
rather than online
- Figure 21: IFAs are concerned about the quality ofinformation available
online when tracking new business
- Figure 22: Policy enquires are least likely to beconducted online than
other types of IFA business
- Figure 23: IFAs believe that they get more reliableinformation about
policies by telephone
- Figure 24: IFAs do not show an interest in supportservices using new
technology
- Figure 25: IFAs would like more support to betterutilize wrap platforms
- Figure 26: IFAs think that they get sufficient supportfrom providers,
but would like more tools available online
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