IFAs should compete on more than price - Aegon

Aegon has begun a campaign to highlight the importance of the adviser market in the face of stiff competition from internet sales.

However, the provider believes IFAs can only do this if they stop competing on price alone and emphasise the extra value they can provide their clients.

It feels advisers in the protection market do have the skills required to add value in a way that can differentiate themselves from non-advised internet distributors.

Stephen Crosbie, head of proposition management, investments and protection at Aegon, suggests IFAs must identify these enhancements and not solely fight on price.

"If traditional protection advisers want to succeed, it is now time to stop competing on price alone," he says.

"One way advisers can differentiate themselves is to leverage the flexibility of menu-based protection which cannot be accessed through the internet, or enhancing their offering to help their clients mitigate the risk of inheritance tax through the use of trust planning.

"Another route that internet distributors cannot compete with is through the ever increasing importance of businesses adequately protecting themselves against the unexpected happening to a key person or shareholder in the company.

Crosbie also believes there is a large swathe of the individual protection market that remains untapped, and that protection advisers have a competitive edge over internet distributors for that business.

He added that the provider would continue to help educate IFAs on successfully targeting these areas and winning more business.