Introduction
The proposed introduction of the 'Sandler suite' of products extends the
concept of stakeholder products to medium term savings vehicles. This, plus the
long-awaited advice regime for the sale of stakeholder products, has the
potential to revolutionize the savings and investment market in the UK. The key
question is whether the regime will really deliver the much-needed boost to the
industry.
Scope of this report
- Datamonitor's unique survey of 100 IFAs, 8 life insurers and 25 banks and
building societies provides a comprehensive assessment of market reaction.
- Independent estimates of the market size and distribution channel mix are
provided for each product.
- The report explores the merits and likelihood of an industry utility
model.
- The report gives Datamonitor's perspective on whether the government's
approach to increased saving is fundamentally flawed and discusses
alternatives.
Research and analysis highlights
- Product providers and distributors have delivered a muted response to the
introduction of stakeholder products, with the majority expecting little or
no impact on overall business levels. Providers show lukewarm response to
the increase in the price cap to 1.5% with few intending to use the cap
increase to increase commissions.
- Few providers foresee basic advisers threatening the IFA channel.
Providers believe that the limited product features of the stakeholder
suite, the nature of the IFAs' customer base, and their well established
position with that customer base means that there is little to worry about.
- The stakeholder 'seal of approval' goes some way to alleviating consumers'
wariness of buying insurance from the bancassurance channel. The reduced
costs of training and the formalized sales process also help to remove some
of the barriers to the success of selling such products using banks' branch
staff.
Key reasons to read this report
- Survey of the major FS players provides a unique and comprehensive insight
into provider reactions to the new products and advice regime.
- Datamonitor's independent forecasts for market size and distribution
channel mix are an invaluable source of information for the industry.
- Datamonitor critically assesses the emergence of an industry utility model
and looks at what the government should do to increase savings in the UK.
View Cart
