Current Projects

What is the future for intermediated financial advice?

The current volatile and uncertain financial environment will, no doubt, leave its mark on intermediary distribution. The RDR was always likely to bring about considerable change and turmoil. However, the credit crunch and subsequent devastation of much of the financial sector means that previous forecasts are worthless. 

In the coming months and years, there will be many failures, but there will be successes too, both providers and distributors. Never was market intelligence more vital. In order to build plans, providers will need detailed answers to varied questions.  These are just a few of the headline questions we intend to answer:

• How will RDR change intermediary distributors?
• Will the ‘New Model Adviser’ model work with an income stream dependent on asset values?
• How robust are adviser remunerations models? Will enough customers pay?
• How will the franchise or network based distributor, with self-employed advisers, adapt to the post-RDR world?
• How many will acquire QCA level 4 in time?
• What proportion will opt for restricted advice and what will it look like?
• How will distributor re-engineering impact on platform use or selection?
• Will the composite, bundled/unbundled platforms gain market share over pure wrap only platforms?
• Will advisers continue to pick funds and create asset allocation models?
• If they outsource, will they recommend multi-manager or discretionary manager?
• Or, will they bring in expertise? Will they rely on toolsets and research providers? Will they run their own funds?
• Are advisers locked into the Baby Boomer generation?
• Do they fully understand longevity issues their clients will face?

Never has the financial services industry faced so many challenges. Never before in living memory has there been greater uncertainty. Providers have to build plans based on a distribution landscape that is shrouded in fog, whilst at the same time many will need to acquire new qualifications.

A high proportion of providers and advisers hope to play in the crowded wealth management sector – but how many have the brand, the presence, the expertise or cachet to do so? Indeed, RDR appears to be pushing IFAs towards wealth management, although the majority of advisers currently deal with B and C socio- economic group clients. Whereas fee-based advice around a platform model works for those advisers who are dealing successfully in the HNW and mass affluent sectors, will this be the case in less-urbane markets, dominated by protection, mortgage and long-term saving needs?

We need answers to questions that the adviser may not really understand. To succeed, a different research methodology is required. We have experience in this and are confident of finding these answers.

If you would like to discuss this work, please contact Clive Waller:

e-mail: clive@cwcresearch.co.uk
Tel: 01730 269629
Mobile: 07710 038520

It won’t happen to me – an analysis of the UK disability market

In the brave new, post-RDR world, we could see advisers flocking to protection to provide commission income to make up for losses of investment business income; spending cuts could be great news for protections providers and distributors. Alternatively, the difficulty of getting comparative quotes, completing lengthy applications and, finally, waiting for ever to get a rated acceptance might just kill the golden goose;

CWC Research is association with Kevin Carr Consulting will be conducting a detailed study on distribution of disability insurance in the UK, now and in the future. This will be a comprehensive piece of work looking across the whole market with a broad range of stakeholders

Objectives

We will gain an understanding of:

• Attitudes and beliefs around the needs for disability products within the broader intermediary community
  
• The experience of those who recommend these products in the areas of quotation, application, underwriting and claims
  
• Intermediary views on remuneration and profitability of selling disability products
  
• Views on current and possible future product design
  
• In addition, we will correlate the views of providers, insurers and discover how other stakeholders e.g. consumer bodies, financial media, regulators, see the role of disability insurance
  
• The impact of the RDR on disability business

Methodology

We will draft an initial questionnaire after consultation with relevant experts; providers and other relevant parties will be asked to add or edit content to ensure accuracy and that all relevant issues are covered.

Interviews will be carried out with some 75 intermediaries of all types – IFAs, tied advisers, mortgage brokers, bancassurers (including initial pilots to test questionnaire).

In addition, insurers will be invited to complete a questionnaire; all participants will receive a summary of responses.

Other relevant parties will be interviewed.

Recognised experts in specific areas will be asked to make contributions.

Scope

We will be looking at all disability conditions and solutions. Products to be included will be income protection and critical illness plus PPI and MPPI.

The work will focus on long-term products predominantly as well as low cost alternatives.  We are only concerned with very short-term products, 12 – 24 months, in as much as they represent competition to long-term products in the minds of some distributors.

We will be looking at:

• Belief in the need for insurance
• Likelihood and nature of claims
• Perception of State Benefits as adequate cover
• Perception of claims payment
• CIC v IP as income replacement
• The quotation process
• Application
• Processing and underwriting
• Acceptance
• Claims handling
• Product design

Who should buy this study?

The study is primarily aimed at those who wish to increase sales of disability products.  We believe that RDR will result in greatly increased opportunities for protection sales, especially disability covers.

The research will benefit those involved in product design, marketing and processing disability products.

Those who have a secondary interest, for example those looking at the relationship between state and insured benefits would benefit from the written report.

Deliverables

The research findings will be correlated on Excel spreadsheet. This enables subscribers to sort and analyse the data to suit their specific requirements.

 A detailed written report will be provide analysis of the research data, a summary of provider views plus contributions from industry experts.

A PowerPoint presentation will be included so that the highlights can be presented when required.

Timing

The fieldwork will be carried out in Q1 2011. The report will be delivered in early Q2.

Pricing

The cost to pre-launch subscribers:  £3,850 (zero rated for VAT)

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