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...
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