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Protection IFAs upbeat about future
Protection IFAs are becoming increasingly confident as the year goes on, with particular optimism about the outlook for future protection sales, according to Legal & General's (L&G's) latest index.
The third Protection IFA Confidence Index in a quarterly series found that advisers have continued to grow in confidence throughout this year.
The index tracks three key elements: current/ future sales, current/ future opportunities to discuss protection with potential clients, and current/ future ease (or difficulty) of converting those opportunities to sales.
Last quarter the current protection sales index was up two points and the future sales index was up significantly, by 32 points.
The current opportunities index was also up two points, with the future opportunities index up sharply by 18 points.
Meanwhile, the current conversion index was up seven points, with the future conversion index up nine points.
Martin Noone, IFA sales director at L&G, said: "All our key measures for confidence are up on last quarter. IFAs are experiencing better protection sales than they were three months ago, but more importantly, the future indices all point to even better figures by the start of next year.
"The future opportunities index shows that IFAs believe that there will be more opportunities to discuss protection with potential clients in six months' time. Similarly, the future sales index shows that IFAs expect protection sales to be better at the beginning of 2010."
According to Noone, more people are taking out income protection, family protection and business protection but critical illness cover has proved less popular.
Noone added: "We believe that successful IFAs are making the most of their existing client bank and using customer relationship management tools to target clients that may need a review."
