Survey highlights main areas for savings in current system
A study by Marlborough Stirling has revealed that at least £2.75bn a year could be saved by the life assurance industry. The findings follow the Treasury Select Committee's attack on the industry for inefficiency, mis-selling and complacency.
Marlborough Stirling estimates around £1.25bn per year could be removed from the current sales process by enabling end-to-end processing of transactions between life companies and IFAs.
The report also claims that life companies should aim to halve the cost of administering life and pension policies from an average of £30 to £15 each year. It claims this would reduce the industry's overall administration and management costs to £3.5bn - an equivalent £60 saving for each UK household.
To achieve greater efficiency, Marlborough Stirling suggests companies update back-office systems, move away from old legacy mainframes and get the most out of new systems.
