Article date: 25 July 2011
- Fewer advisers plan to leave the industry than at any time over last two-and-a-half years
Advisers’ confidence is growing, according to latest intermediary research from Aviva. It shows fewer advisers say they will leave the industry, due to forthcoming market changes including the retail distribution review (RDR) and capital adequacy, than at any time over the last two-and-a-half years. Just 7% now plan to stop trading, compared to 10% in December 2010 and 36% in January 2009.
Aviva’s research also shows that advisory firms are making good progress getting their businesses ready for RDR. More than two-thirds of advisers (69%) are changing their business models, with three-quarters (74%) introducing different service levels for different types of client.
More firms (71%) plan to offer independent advice, up from 65% in December 2010, with fewer firms planning to offer restricted advice or a multi-advice model.
As more advisers work towards their qualifications, the focus of their concerns is shifting towards the financial reality of running a business post-RDR. Qualifications are now less of a concern (39%) than worries about remaining profitable (47%), adopting adviser charging (44%) and applying VAT to the new charging model (40%).
Dean Lamble, director of distribution development at Aviva said: “It’s encouraging to see growing adviser effort and confidence as the RDR deadline moves ever closer. We’ve seen membership of the Aviva Adviser Academy increase to over 10,000 this year as advisers study hard for the new qualification to meet the RDR requirement. The increase in confidence is down to all the hard work advisers are putting in, getting to grips with RDR requirements and preparing their businesses to trade after 2012.
“At Aviva we constantly review what intermediaries are telling us through our research, so we can take steps to put technical support and practical guidance in place for advisers. Our websites, Aviva for Advisers and the Adviser Academy, together with our business transition programme are all ways in which we are supporting advisers through the significant changes that RDR is bringing to our industry.”
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The research was carried out by Aviva between 7 and 9 June 2011. 267 intermediaries were interviewed via an online survey.
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 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.