Research from actuarial and management consultants Tillinghast and its sister company Towers Perrin ...
Research from actuarial and management consultants Tillinghast and its sister company Towers Perrin suggests advisers have yet to maximise opportunities for distribution of financial products via the workplace.
In a recent survey, Towers Perrin found at least 56% of companies expect to take a different philosophical approach to their benefits packages in the future and offer a wider range of options but with greater control of the cost of the benefits financed by the employer.
They say the number of companies offering voluntary benefit plans are up by 10% to 33% since 2000. Some 12% have already included access to financial advice as an employee paid option and 5% offer access to advice as a flexible benefit. Worksite marketing of financial services is now estimated to generate over $3.5bn in insurance revenues annually in the US.
Vaughan Jenkins, senior consultant, Tillinghast, said employers are focused on controlling benefit costs, while employees are particularly concerned about their retirement funding.
He says: 'For providers, uncertainty over depolarisation means many are looking to develop alternative routes to market. Collective selling opportunities via employers, including sales of stakeholder-style saving plans coupled with support from lower cost, second-tier advisers could be economically attractive for providers. A number of interests in the worksite are converging.'
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