E-commerce poses both a threat and an opportunity to IFAs, according to a panel of experts speaking ...
E-commerce poses both a threat and an opportunity to IFAs, according to a panel of experts speaking at the cover Protection Forum.
But the likely impact will largely depend on how enthusiastically IFAs grasp the nettle.
The panel comprised: Kevin Pearce, protection marketing director at ZIFA; Jonathon Bowyer, development manager at Swiss Re; Michael Ward, managing director of Direct Life and Pensions; Stephen Wynne-Jones, product market-ing manager at The Exchange; and Peter Savill, managing director of Hannover Life Re UK.
"It is a threat and an opportunity," said Pearce. "Whether it is a threat depends on you and the way you take up the opportunities e-commerce provides."
Ward agreed that e-commerce would only threaten those IFAs that bury their heads in the sand. "There is nothing to fear from e-commerce - it is one huge opportunity. Some will profit more than others but the only threat is if you ignore it and do not participate in that business-to-business relationship."
One of the most commonly discussed threats to IFAs has been the concern that consumers' ability to buy financial services online will eliminate the role of IFAs.
But Bowyer said that while consumers are warming to the idea of e-commerce, Swiss Re's research has found that 65% of people will not buy financial services online and while they may be inundated with information they will still want advice. "In this environment, as long as IFAs add value then e-commerce has got to be an opportunity."
Savill added that e-commerce could become a global issue for IFAs. "We may find international IFA groups working on an overseas basis," he said.
