The Distribution Survey Report is the first in a series of thematic reports which provide valuable industry insights to AILO Members.
This report was based on feedback from 23 AILO Member firms (74% of Membership) across three distinct geographical regions (Europe, UK and International). The detailed report is available exclusively to AILO members but for the benefit of the wider industry, we can reveal three headlines:
- AILO Members use a wide variety of distribution channels. Independent Financial Advisers (IFAs) are the dominant channel, followed by bancassurance and company agents. However, if all bank-sourced business is included as a single entity it runs the IFA channel much closer, particularly in Europe (the largest geographic region by market size).
- 65% of AILO Members have more of an open mind regarding considering alternative channels of distribution than previously recognised, as long as they are able to access their existing target market customers via another route.
- 59% of respondents expressed an interest in developing ‘White Label’ products for other financial institutions and 35% would consider a web-based offering. However, some concerns were raised regarding the adoption of alternative channels which included greater regulatory scrutiny and not having the specialist skills in-house.
Simon Willoughby, AILO Proposition Executive who played a leading role in conducting the survey and compiling the report, commented “The cross-border nature of our Members’ businesses makes the gathering of reliable management information extremely difficult and, for the uninformed, virtually impossible to interpret accurately. There is, in effect, a management information (MI) deficit in this niche sector. As the trade body representing the international life, pensions and wealth management industry, AILO is uniquely placed to address the deficit. Therefore, to enhance the value we provide to Members in the context, we decided to create this new series of thematic surveys and reports. We chose distribution as the first theme because it is of vital importance to life companies in general, but especially to cross-border life companies because they are often conducting their business at a distance.”
Bob Pain, AILO CEO, added “This first thematic survey and report has clearly demonstrated the added value that AILO can bring by consolidating and analysing data to create relevant management information for the benefit of all our Members. This collective approach permits analysis that would otherwise be impossible for individual companies to obtain. By seeking to address the ‘MI deficit’, AILO is helping to lay the foundations for a healthy and prosperous future for the sector.”
Later this year the series will continue with two more surveys and reports focusing on digital futures and capital management.