Introduction
The wrap market in the UK is at a fledgling stage, however there is
unprecedented activity with many competitors targeting this market. Wrap
accounts have the potential to dramatically alter the financial services
landscape in the UK and specifically the way life and pensions products are
marketed, sold and priced and the revenues that are gained from them.
Scope of this report
- UK. Includes comparative studies of US, Australian and major European
markets;
- 'Wrappable' asset sizing and allocation, distribution channel sizing,
distributor attitude analysis;
- Survey of 100 UK IFAs.
Research and analysis highlights
The UK is the most attractive market for wrap accounts in Europe. The main
factor that makes the UK unusually attractive is the fact that the UK's
distribution market is dominated by IFAs. It also offers a large pool of assets,
many of which are highly suitable for inclusion in wrap platforms, for example
direct equity.
In established wrap markets such as the US and Australia wraps are focused on
equities. However life and pensions companies in the UK need to operate on the
basis that their products will be wrappable and that wrap accounts will form an
important part of their market in the future. This requires the development of a
coherent wrap strategy.
The key to the wrap market is partnerships, and life and pensions companies
should be prepared to outsource, partner and make their own systems as open and
widely compatible as possible. Those that adopt an insular and secretive
approach are likely to induce unnecessary development costs and be quickly
outpaced by market developments.
Key reasons to read this report
- Analyses distributor attitudes that will shape the market for wrap
products;
- Gives detailed analysis of how life and pensions competitors will be
impacted by the development of the wrap market in the UK;
- Delivers specific action points about the best strategies for life
companies to adopt going forward.
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