IFA network members reported a 39% drop in PMI sales according to new figures from the annual Henry...
IFA network members reported a 39% drop in PMI sales according to new figures from the annual Henry Samuels Marketing Services report.
There has been an average downturn of 14% in penetration levels across the entire network business, with a fall of 18% in life assurance, savings and endowments. However, one of the only areas to remain close to last year's level was protection business with a fall of only 2%.
Henry Samuels, chief executive of Henry Samuels Marketing Services, said: 'PMI business has fallen because IFAs are having to put a lot of effort in for little return. But the decline has been following a steady pattern for a number of years. Protection has fared slightly better because it is not used for life and pensions business as much. It has also done better than most because it is a highly competitive com-modity product.'
The survey also found that while network membership is continuing to grow and most are still satisfied with the running of their network, there is a growing level of dissatisfaction. 57% would reportedly 'go it alone' if they left their current network, up from 30% in 1997. Only 15% would be prepared to join another network.
Samuels said: 'The networks saved many small independent firms from going under, but now many firms are more confident of going alone. The basic problem is that networks are not consulting IFAs and decisions are being made in a high-handed way. IFAs are finding that new terms and conditions are being imposed that they never agreed to.'
