Insurers 'will consolidate or reform' - FSA study

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The life insurance industry may need to rethink its position as a study predicts wrap platforms will undermine their product assembler role.

Research commissioned by the Financial Services Authority ahead of its review of the retail distribution market, and delivered by KPMG, presents two scenarios for the future of the market which suggest insurers will either consolidate or have to change their roles in light of wrap platform development. In a report entitled The future of advice: a report for the FSA – IFAs, KMPG suggests there are two differing scenarios for the future of UK financial advice beyond 2011, which both suggest the number of IFAs in the market will decrease and with it the position of the life insurance sector....

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