Bancassurance is not as significant a threat to IFAs as originally expected and will not continue to...
Bancassurance is not as significant a threat to IFAs as originally expected and will not continue to be so for the next five years, according to recent research.
Findings from independent market analyst Datamonitor have shown that this is despite continuing growth over the past three years.
While Bancassurance is eating into IFAs' market share, advisers remain in a dominant position in the UK life and pensions market.
Sales of life products via bancassurance are on the increase while, in contrast, the pensions business is stagnating. UK bancassurers have seen more growth in single premium life than regular life sales in the last two years.
Bancassurance is the prevalent distribution channel in other European countries such as Portugal, Italy, France and Spain but there is doubt over whether the UK will adopt a European-like model.
Only a handful of banks in the UK have put a significant amount of effort into bancassurance and this situation is unlikely to change in the near future.
This is in contrast to Italy, that has seen strong growth in bancassurance in recent years.
The insurance products that are being offered in other European countries also tend to be simple and act as a natural fit with banks' existing banking products.
