Half of protection intermediaries have foreseen rising D2C propositions as the biggest threat to business.
According to a poll, carried out by Avelo, despite the growing challenge intermediaries were bullish, with 40% seeing no threats to business on the horizon.
But a further one in five showed some concern that a potential influx of advisers, looking to add protection to propositions post-RDR, might cannibalise the market.
Dave Miller, head of portal at Avelo, said: "Although protection was not an area directly affected by RDR, it's interesting to see how changes in the regulatory environment coupled with demographic and technological shifts have had a knock on impact.
"While it is heartening that many of the advisers we questioned do not envisage any major threats to their business in this area, others are justifiably concerned about the increasing competition either from new market entrants or D2C propositions."
John Morgan, financial adviser at IFA and accountancy firm Pethericks and Gillard, said D2C propositions would not be a threat to specialist advisers who had an acute sense of business.
He said: "Being an accountancy practice primarily our clients have specific protection needs that are quite distinct and specialised so probably would not turn to doing it themselves.
"We are also fee-based. We offer a transparent proposition for clients that is a better deal for them in the long run and better for us too as there is no clawback risk, and therefore personal indemnity insurance is also cheaper."
He added the firm did not foresee any specific challenges to its protection business, but that any change in the FCA's approach to qualifications or commission could pose a threat to many.
"The commission ban would not hit us because we are fee-based. I do not get any feelings that the regulator has immediate plans to impose level 4 qualifications on protection advice like other RDR advcie areas, but it could very well come in," Morgan said.
Miller said protection specialists could take solace in the government's growing emphasis on bridging the protection gap, as evidenced in the recent Budget.
He added: "This should ultimately grow the protection market in the long-term. In fact, the market is already showing signs of growth this year, with volumes in the first quarter rising by 16% compared to the same period last year, which bodes well for the remainder of 2013."
The Avelo poll was carried out as part of its Experience Mortgage & Protection roadshows in February and March.
