What Does Good Service Mean For IFAs?

Published by: Datamonitor

Published: May. 9, 2006 - 53 Pages

Table of Contents

EXECUTIVE SUMMARY

Market context

Who offers the best service?

What aspects of service are crucial?

CHAPTER 1 MARKET CONTEXT

Introduction

Characteristics of the financial advice market survey

The sample of financial advisors

Financial advisors remain optimistic about the future

The majority of financial advisors expect further growth in their market over the next six months

Sole traders gained new optimism regarding the advisor market

Growth potential within financial advisors’ product range focuses on five products

ISAs have the most growth potential in the next six months

The outlook for protection products remains almost the same

Sales figures in the with-profit bond market continue to fall

The financial advisors’ attitude towards insurers and mutual fund providers

Skandia, Friends Provident and Legal & General moved up in the ranking while

Standard Life, Prudential and Clerical Medical fell

Advisors’ attitude towards insurers further declined in the lower end of the scale

Fidelity again ranks first among mutual fund providers while financial advisors still have the most negative perception of HSBC

Advisors’ attitude towards top three mutual fund providers has further improved;

Gartmore makes the biggest step forward

CHAPTER 2 WHO OFFERS THE BEST SERVICE?

Introduction

A good service offering is vital for financial advisors

Standard Life offers by far the best service, followed by Skandia

Aviva offers by far the weakest service, followed by AXA

The level of service influences the allocation of business

CHAPTER 3 WHAT ASPECTS OF SERVICE ARE CRUCIAL?

Introduction

Financial advisors appreciate efficiency and quality of communication

Standard Life gets highest rating throughout all different aspects of service

Speed of dealing with problems and support is the area giving the most time-saving for financial advisors

Efficency of policy processing varies between product areas

Online capabilities are crucial to the service quality

The preferred method of communication is online, followed by telephone

Online technology has improved providers’ quality of service

Overall, advisors simply want to be listened to

APPENDIX

Supplementary data

Research methodology

Rating index for financial advisor product and provider attitude

Definitions

Life Assurance

Single Premium Life

Annual Premium Life

Single premium pension products

Annual premium pension products

Definitions of distribution channels

Future readings

SPP writing team

LIST OF TABLES

Table 1: Which of the following best describes your company?

Table 2: I believe in the next 6 months the financial advice market will…

Table 3: Over the next six months how do you expect sales in each of the following products to change?

Table 4: Adivsors’ rating of leading insurers

Table 5: What is your attitude to the following mutual fund providers?

Table 6: Advisors’ rating of mutual fund providers

Table 7: Which provider offers the best all round service?

Table 8: Which provider offers the worst all round service?

Table 9: How important are the following aspects of service to choice of provider?

Table 10: Ranking of most important aspects of service

Table 11: How much time do you save per week by receiving a good service in the following areas?

Table 12: Ranking of most time-saving aspects of service

Table 13: Efficiency of policy processing ranked by type of product

Table 14: What is your preferred method of communication with providers?

Table 15: Methods of communication with provider ranked by preference

Table 16: In your opinion, what can providers do to improve levels of communication between themselves and financial advisors?

Table 17: Financial advisors see most potential in improving quality of help lines

Table 18: Does more than 50% of your customer base have total liquid assets of over £200,000?

Table 19: What is your attitude to the following insurers?

Table 20: Which provider offers the best all round service?

Table 21: Which provider offers the worst all round service?

Table 22: Quality of communication with advisor

Table 23: Efficiency of processing claims and queries

Table 24: Speed of dealing with problems and support

Table 25: Efficiency of commission payments

Table 26: To what extent to you agree with the following statements:

Table 27: Please rank on a scale of 1-5, the efficiency of policy processing in the following areas:

LIST OF FIGURES

Figure 1: One-third of the surveyed firms were sole traders

Figure 2: Advisors’ 6 month forecast: comparison of Q1 and Q2 2006

Figure 3: 56% of financial advisors expect growth in their market

Figure 4: ISAs have overtaken SIPPs in the 6 months forecast

Figure 5: The attitude to insurers has changed significantly between the two surveys in the first half of 2006

Figure 6: Advisors’ attitude towards top three mutual fund providers has further improved

Figure 7: The most common reasons given for a provider being a financial advisor’s favorite

Figure 8: In your opinion, has the service financial advisors receive from providers improved in the last 5 years?

Figure 9: To what extent does service influence the choice of provider?

Figure 10: What percentage of your business do you give to the provider with the best overall service?

Figure 11: What percentage of your business do you give to the provider with the worst service?

Figure 12: Ranking of providers based on four different aspects of service

Figure 13: Has the growth in online applications, processing and management of policies improved the service that you receive from providers?

Abstract

• Survey of 100 financial advisors to ascertain their opinion of market developments and the level of service they receive from providers.
• The report analyzes how important service is for financial advisors and which providers fulfill client needs regarding this aspect.
• Identifies those areas of service that are most important to advisors.

• Find out how important service is for financial advisors when it comes to the choice of provider.
• Identify key areas of service that need to be improved in order to gain financial advisors' esteem.

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