'High cost advice is a waning concept' - Deloitte

clock

Consulting firm Deloitte claims the life and pensions industry needs a new business model as "undifferentiated, high cost advice for all customers is a waning proposition".

In its report ‘Face to Face with the Future: sustainable solutions for the £66bn distribution challenge facing UK life and pensions providers’, Deloitte says the long-term sustainability of the life and pensions business model is in question because of the industry’s reliance on high commission distribution channels. Following on from comments made by Callum McCarthy, chairman of the Financial Services Authority (FSA), at the Gleneagles Savings and Pensions Industry Leaders’ Summit over the weekend, Deloitte says “high initial commissions can encourage churn and poor persistency. In some...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

News editor's view: Let's give it up for the small advice firms

News editor's view: Let's give it up for the small advice firms

The news editor's Friday Night Takeaway from 22 May

Isabel Baxter
clock 22 May 2026 • 4 min read
Women more likely to seek professional financial advice – research

Women more likely to seek professional financial advice – research

Twenty percent of women likely to seek advice

Sophia Panayi
clock 22 May 2026 • 2 min read
The expectation gap: Why suitable advice can still fail the client

The expectation gap: Why suitable advice can still fail the client

'The industry is moving from suitability, to understanding and now to expectation management'

Elly Dowding and Lee Coates
clock 22 May 2026 • 4 min read