Double-digit growth is expected for non-advised distribution channels during 2010 as providers try to boost new business, according to Ernst & Young (E&Y).
Making its latest predictions for the UK life sector, E&Y says life assurers will increasingly try to find new routes to market by selling directly to consumers.
The report, Happy New Year? UK Life and Pensions Outlook 2010, says this year will see many firms developing new propositions to meet the needs of the mass market.
As a result of the need to provide low-cost distribution to consumers who will not pay fees, E&Y expects non-advised businesses to grow by at least 10%.
E&Y forecasts growth in this sector despite general stagnation in life and pensions new business, as the industry prepares for the impact of the RDR.
Looking further ahead, the report says total adviser numbers will fall 25% to around 20,000 by the end of 2012.
It also predicts strong interest in the ‘restricted' advice channel, provided it is not altered by the FSA, with a 50/50 split between independent and restricted advisers expected by the time RDR is implemented.
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