Sandler Suiteの導入提案：英国貯蓄投資市場への影響分析

Introduction

The proposed introduction of the 'Sandler suite' of products extends the concept of stakeholder products to medium term savings vehicles. This, plus the long-awaited advice regime for the sale of stakeholder products, has the potential to revolutionize the savings and investment market in the UK. The key question is whether the regime will really deliver the much-needed boost to the industry.

Scope of this report

• Datamonitor's unique survey of 100 IFAs, 8 life insurers and 25 banks and building societies provides a comprehensive assessment of market reaction.
• Independent estimates of the market size and distribution channel mix are provided for each product.
• The report explores the merits and likelihood of an industry utility model.
• The report gives Datamonitor's perspective on whether the government's approach to increased saving is fundamentally flawed and discusses alternatives.

Research and analysis highlights

• Product providers and distributors have delivered a muted response to the introduction of stakeholder products, with the majority expecting little or no impact on overall business levels. Providers show lukewarm response to the increase in the price cap to 1.5% with few intending to use the cap increase to increase commissions.
• Few providers foresee basic advisers threatening the IFA channel. Providers believe that the limited product features of the stakeholder suite, the nature of the IFAs' customer base, and their well established position with that customer base means that there is little to worry about.
• The stakeholder 'seal of approval' goes some way to alleviating consumers' wariness of buying insurance from the bancassurance channel. The reduced costs of training and the formalized sales process also help to remove some of the barriers to the success of selling such products using banks' branch staff.

Key reasons to read this report

• Survey of the major FS players provides a unique and comprehensive insight into provider reactions to the new products and advice regime.
• Datamonitor's independent forecasts for market size and distribution channel mix are an invaluable source of information for the industry.
• Datamonitor critically assesses the emergence of an industry utility model and looks at what the government should do to increase savings in the UK.

Executive summary

Introduction

Provider reactions

Market size

Distribution channels

Is a new business model needed?

Is the government taking the right approach to plug the savings gap?

CHAPTER 1 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 2 THE PROPOSALS

Introduction

Key findings

Price cap - how will it work?

Basic advice - how will it work?

Why will basic advice be cheaper?

Will the full stakeholder suite go ahead? The jury is still out

CHAPTER 3 MARKET REACTIONS TO THE STAKEHOLDER PROPOSALS

Introduction

Key findings

Overall reaction is muted

Large household names intend to sell the products but there are mixed reactions from the smaller players

Half of IFAs see little or no appeal for their client base

Larger financial service players also have a low appetite for stakeholder products

Deposit account

Unitized investment fund

SIF

SIF in the suite?

Pension

Child Trust Fund

Smaller building societies have no appetite for stakeholder products

Investment industry will not offer stakeholder products

Providers and IFAs see little impact on sales

Long time to profit for equity-based products

High monthly premium level needed for profit

Providers show lukewarm response to the increase in the price cap to 1.5%

Little or no intention to spend increase in cap on increased commissions

Industry prefers higher front-end charges

Basic adviser not a threat to IFAs

Few intented to employ basic advisers

Industry voices concerns over basic advice sales process

Jury still out on suitability of pensions and the SIF for basic advice

Industry worried basic advice process will lead to mis-selling claims

Most happy not to have a pre-scripted process

Few disagreed on advisers limited role

Industry agrees that a single product is best

CHAPTER 4 MARKET SIZE

Size of the savings market- Government estimates

Deloitte view

Sensitivity testing

FSA view

Size of the savings market - Datamonitor view

Market size for the deposit product

Market size for the Child Trust Fund

Market size for the medium term savings products

Size of the stakeholder pension market-Government view

Deloitte view

FSA view

Size of the stakeholder pension market - Datamonitor view

CHAPTER 5 DISTRIBUTION CHANNELS

Assumptions underlying the cash estimates

Assumptions underlying the unitized savings estimates

Assumptions underlying the SIF estimates

Assumptions underlying the pension estimates

Assumptions underlying the Child Trust Fund estimates

CHAPTER 6 IS A NEW BUSINESS MODEL NEEDED TO MAKE STAKEHOLDER PRODUCTS WORK?

Introduction

Key findings

Why do FSIs push back against outsourcing?

Factors pushing towards outsourcing

What will the position be?

CHAPTER 7 IS THE GOVERNMENT TAKING THE RIGHT APPROACH TO PLUG THE SAVINGS GAP?

Key findings

CHAPTER 8 APPENDIX

Research methodology

Datamonitor Financial Services Consulting

Current publications

Forthcoming publications

Life & Pensions SPP Team

How to contact experts in your industry

List of Tables

Table 1: Estimated distribution channels for stakeholder products

Table 2: FSA assumptions of salaries and training costs

Table 3: FSA's estimates of total sales time

Table 4: Estimated sales cost by channel

Table 5: Outcome of basic advice compared to full advice

Table 6: Breakdown of the Deloitte numbers of stakeholder savers

Table 7: FSA numbers of stakeholder savers

Table 8: Estimated market size using FSA assumptions

Table 9: Estimated market size for stakeholder pensions using Deloitte assumptions

Table 10: Estimated market size for stakeholder pensions using FSA assumptions

Table 11: Estimated distribution channels for stakeholder products

Table 12: Total equity based saving market 2000-2003

Table 13: The total unit-linked life market 2000-2003

Table 14: With-profits products as a share of the total life related savings market 2000-2003

List of Figures

Figure 1: IFAs see the new stakeholder products having little impact on their business

Figure 2: Insurers and banks believe the introduction will have little or no impact on their business

Figure 3: The high street banks will sell the stakeholder deposit product

Figure 4: Providers have more appetite for the unitized fund

Figure 5: With-profits bonds have collapsed since 2000

Figure 6: Customers are open to persuasion on with-profits funds

Figure 7: Half of insurers will offer the new SIF product

Figure 8: A third of insurers are not convinced SIF should be a stakeholder product

Figure 9: Pensions are by far the most popular product

Figure 10: Mixed views on the CTF

Figure 11: IFAs see little change as a result of stakeholder products

Figure 12: Providers also believe the new stakeholder products will do little to generate significant new business

Figure 13: Providers see a 15 year horizon for profitability

Figure 14: No IFA consensus on the level of premium needed to make stakeholderworthwhile

Figure 15: Majority see the increased price cap having a small positive impact on their business

Figure 16: Few expect to pass on the price cap increase to distributors

Figure 17: 40% of IFAs are concerned about basic advisers

Figure 18: Few providers think basic advisers will be a threat to the IFA channel

Figure 19: Less than a third of IFAs are aged under 40

Figure 20: Pensions and SIF not suitable for sales by a basic adviser with no pre-scripted process

Figure 21: Most are happy with the proposal to allow firms to design their own sales process

Figure 22: What is the biggest threat to the bancassurance model that you employ?