2013-01-16 16:04:18 - New Financial Services market report from Datamonitor: "UK IFAs 2012"

Advisors will face increasing pressure to become RDR-compliant by the end of 2012. They will need to decipher how they will adapt their business models according to RDR requirements while remaining profitable in the market

Scope

* Analyze the size of IFA market in the UK, including IFA's share in bonds, pensions and protection products
* Gain insight into how RDR will shape the IFA market going forward
* Provides analysis of the key life and pension products, including how the economic climate will affect individual product lines.

Report Highlights

The distribution of life and pensions products is heavily weighted among independent financial advisors (IFAs). In 2011 IFAs accounted for 75.4% of the total life and pensions market, while bancassurance accounted for just

9.3%.


Full Report Details at
- www.fastmr.com/prod/531055_uk_ifas_2012.aspx


With-profits bonds are the only bond within the market to witness a compound annual growth throughout the period 2007-2011. New business in this market totaled GBP1.8bn in 2007 and has risen 6.8% over the five year period to GBP2.3bn in 2011.

Reasons to Get this Report

* How are IFAs responding to changes facing them post RDR?
* What products are most popular amongst IFAs and why?
* Which IFAs are increasing their turnover and moving up in the IFA rankings?

Partial Table of Contents:

OVERVIEW
* Catalyst
* Summary

EXECUTIVE SUMMARY
* Review of 2011

* In 2011 independent financial advisors accounted for 75.4% of new business within the life and pensions market
* In 2011 advisors created GBP3.2bn in new business through the sale of unit-linked bonds
* The continuing uncertainty in the UK economy led to an increase in demand for with-profits bonds
* The protection market will remain key for IFAs, especially after RDR implementation
* The market for term assurance grew while the dynamics of distribution changed
* IFAs held 76.3% of the group pension market in 2011

* Key regulation changing the IFA landscape

* The RDR will have the most profound effect on IFAs, who will have to adapt their business models going forward
* Advisors will hurry to adapt their pricing structures in line with declining consumer willingness to pay post-RDR
* The transition to a fee-based model will need to happen quickly if IFAs are to receive a sustainable income
* In preparation for the RDR advisors are seeking out new opportunities in the protection market
* IFA networks will consolidate as a direct result of pressure from the RDR

* IFA business structures

* Sesame remains the largest IFA with turnover of GBP470m in 2012

* The future IFA market

* IFAs will look to grow their presence in the protection market as a result of the RDR

REVIEW OF 2011
* Introduction
* In 2011 IFAs accounted for 75.4% of new business within the life and pensions market
* Despite a decline in the bond market advisors increased their share

* In 2011 advisors created GBP3.2bn in new business through the sale of unit-linked bonds
* The continuing uncertainty in the UK economy led to an increase in demand for with-profits bonds
* Advisors saw their share of the guaranteed bond market dwindle to 0.1%
* IFAs managed to retain their market share within the distribution bond market
* IFAs are the only provider of money market bonds as their complexity draws consumers to advisors

* The protection market will remain key for IFAs, especially after RDR implementation

* The market for term assurance grew while the dynamics of distribution changed
* Whole-of-life insurance witnessed positive growth as consumers looked for guaranteed payouts
* The distribution of income protection and critical illness insurance is heavily weighted among IFAs

* IFAs are the dominant distributor within the individual pensions market, accounting for 89.1% of new business in 2011

* In 2011 IFAs distributed 97.1% of group personal pensions, dominating new business in the individual market

* IFAs held 76.3% of the group pension market in 2011

* Defined contributions will remain a key pension product as defined benefits continue to decline

KEY REGULATION CHANGING THE IFA LANDSCAPE
* The RDR will have the most profound effect on IFAs, who will have to adapt their business models going forward

* To remain profitable advisors will be seeking out new product areas and adapting business models
* The RDR will change the dynamics of the IFA market as advisors seek to become holistic, generalist, or specialist
* Advisors will hurry to adapt their pricing structures in line with declining consumer willingness to pay post-RDR
* The transition to a fee-based model will need to happen quickly if IFAs are to receive a sustainable income
* In preparation for the RDR advisors are seeking out new opportunities in the protection market
* The RDR will have an overall positive impact on the market for life and pensions

* IFA networks will consolidate as a direct result of pressure from the RDR

* Without consolidation, networks will find it difficult to attract advisors post-RDR
* Overall, IFA networks that consolidate will provide a value for money service to advisors

IFA BUSINESS STRUCTURES
* Introduction
* The top 20 IFAs accounted for 77.1% of the top 100 IFAs' turnover

* Sesame remains the largest IFA with turnover of GBP470m in 2012
*

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=531055&dt=t

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