Advisers feeling positive as client demand boosts revenues

Article date: 23 May 2011

  • 54% of IFAs report an increase in revenues
  • 61% believe the public’s perception of independent advice is positive

Aviva’s latest Hot Issues Tracker finds IFAs feeling positive about the future with 54% reporting an increase in revenue in the first quarter of the year and 66% expecting to see an increase over the next three months.

The regular Aviva Hot Issues Tracker research works to ensure Aviva fully understands how it can support intermediaries. The latest research examined how IFAs are looking to build their intermediary business in 2011 and beyond.

It found just 15% of IFAs had seen a fall in revenue over the last three months, compared to 54% who had seen an increase in revenues and 25% who’d seen revenue increases of more than 10%. And, as a result of the more positive revenues, only 6% of IFAs are predicting a fall in revenues in the second quarter of the year.

This was a positive change compared to six months ago when 20% reported seeing a decline in revenues compared to 42% who had seen an increase and 17% who had seen increases of more than 10%.

Consumer confidence
This improved outlook has been helped by the standing of IFAs among consumers. Asked how consumers currently perceive the value of independent advice, 61% of IFAs said that in their experience the public viewed advice positively, with just 19% reporting a negative impression.

However, improving confidence among IFAs is tempered by the fact that 41% feel the current economic environment is affecting their business negatively; compared to 31% who feel it is having a positive effect. 

Product demand
As the tax year drew to a close there was a surge in the number of people expressing an interest in investments, making them the most sought after financial products, with 41% of advisers saying this is the area where they’ve seen most demand, ahead of pensions (25%) and mortgages (14%) (see below). 

Which products have you seen most demand for over the past three months?        

Investments

41%

Pensions

25%

Mortgages

14%

Annuities

9%

General insurance

5%

Tax

3%

Savings

2%

Healthcare

1%

Source: Aviva

Dean Lamble, director of distribution development, says: “It is really good news that, despite the difficult economic conditions, by and large intermediaries are reporting an increase in revenues, and that they are positive about the outlook for the next quarter.

“Demand for products – especially investments – was strong in the first quarter of the year and crucially IFAs are reporting that clients value their skills and the work they put in to deliver the best service for them.

“The Hot Issues Tracker is designed to gather regular feedback and to enable Aviva to take proactive steps to address issues and provide practical guidance and technical support for advisers. Aviva recognises that providers need to work closely with IFAs to help them develop their business. One of the main ways we do this is through our website, Aviva for Advisers, along with our support programme ‘Achieve it with Aviva’, which together give IFAs the information, support and secure product functionality they need, when they need it.”        

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If you are a journalist and would like further information, please contact:

Aviva Press Office: Jess Geoghegan: Media Relations Manager: 01904 684128 / 07800 695673 / jess.geoghegan@aviva.co.uk


The Wriglesworth Consultancy: Lee Blackwell / Ben Marquand / Emma Beresford - 020 7427 1400 / l.blackwell@wriglesworth.com

Insightful videos on RDR and other industry issues are available on Aviva for Advisers: http://www.aviva-for-advisers.co.uk/adviser/site/public/support/videos

Methodology:

The research carried out by Wriglesworth Research. Almost 400 intermediaries were interviewed via an online survey between 18 February and 14 March 2011. All applicable findings have been compared to the October 2010 research findings.

Notes to editors:

Aviva is the world’s sixth largest* insurance group. We provide more than 53 million customers with insurance, savings and investment products with total worldwide sales in 2010 of £47.1 billion**.

We are the UK’s largest insurer with 19 million customers and one in three households has a relationship with us. Our combination of life, health and general insurance, together with motoring services from RAC, is unique in its scale and breadth in the UK market.  Customers can choose to buy our products through intermediaries, our corporate partners or from Aviva direct and we have become the partner of choice for many of the UK’s biggest organisations. 

We are ranked as one of the UK’s top ten most valuable brands and Aviva Plc are in the top 10% of socially responsible companies globally in the Dow Jones Sustainability World Index.  In 2010 we invested £4.3m into our communities in the UK, which included 1,500 Aviva volunteers giving 24,000 hours for good causes. In addition, our employees gave £600,000 through fundraising and donating. Read our corporate responsibility report at www.aviva.com/2010cr.

Aviva is working in partnership with Railway Children through the Aviva Street to School programme to get children living or working on UK streets back into everyday life. Find out more at www.aviva.co.uk/street-to-school.

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* based on gross worldwide premiums at 31 December 2009.
** at 31 December 2010.

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