Major insurers are spending millions of pounds of cash reserves to win a larger share of the corporate pensions market, despite evidence that much of the business will prove to be loss-making, according to a leading insurance-market expert.
Independent analyst Ned Cazalet warned yesterday that several major firms were locked in a costly race to sell group personal pension plans to employers by offering big commissions to the advisers handling the transaction, ahead of rules banning such commission-based sales, according to The Guardian. He warned that such huge commissions would undermine the insurers' ability to make a profit. His view was backed by analysts Bernstein, which said last week that the UK insurance market was "harmed" by its relience on "expensive and disruptive" financial advisers to sell their products. ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
