You need risk for reward

Dave Ferguson

Professional Adviser
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Dave Ferguson of the Abacus, says life offices should be looking to riskier markets in order to rebuild their margins going forward

While the gradual and accelerating disintermediation of the life industry in respect of asset accumulation products shows no sign of abating, it is perhaps unsurprising that some offices are seeking new ways to maintain business volumes, and crucially, retain margin. In a sector that has largely focused on business volumes rather than the profitability that is contained within the old actuarial box of tricks (what would you like the answer to be?) it has taken a threat to volumes to cause serious questions to be asked. That the profitability of certain contracts has been draining away for ...

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