Auto-enrolment will spark a surge in pension business and providers could struggle to cope with increased volumes unless they prepare now, Friends Life has said.
The provider is expecting a 20% to 40% increase in its client book following auto-enrolment and is working with advisers to brace for the increased volume of clients.
The provider said it saw auto-enrolment as a "massive opportunity" for providers and advisers.
Speaking after the release of the firm's preliminary results this morning, Friends Life corporate benefits managing director Colin Williams said: "The key thing is being able to handle that volume in a cost efficient fashion.
"We're spending an awful lot of time, money and effort ensuring our receiving platforms are efficient, scalable and robust.
"Some of the providers in the market place are trying to set themselves up in competition with NEST. I think that is exactly the wrong strategy."
Williams said new corporate pension business had increased to £496m in 2011.
"We had a slow start to 2011, we were going through the throes of bringing out sales forces together but we really built up a head of steam. I am very pleased with the business performance," he added.
Williams also confirmed the provider was nearing completion of its auto-enrolment proposition.
He explained: "We have been doing a lot of market testing with distributors and advisers in the market place, and our clients."
He also said the firm was "out of the design phase and into build" on its retail distribution review strategy.
Williams said: "As a business we are not trying to build every single commutation on adviser and client charging - we could be around for quite a while if we were doing that. We are working with our distribution partners to understand what they want."
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