Advisers believe that life companies will have to change their business models as sales of insurance bonds fall in favour of mutual funds, according to new research from Fidelity FundsNetwork.
The survey, which questioned over 230 advisers across the UK, revealed that the vast majority (85pc) of advisers believe that sales of investment bonds are set to decline, with nearly a quarter (24pc) predicting this decline will be significant. By contrast, an almost equal number (86pc) of advisers foresee a rise in the sale of mutual funds, with just over a fifth (21pc) stating that sales will increase dramatically. Almost half of advisers (48pc) now believe that life companies will have to change their business models; this considerable swing in the favour of mutual funds would presen...
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