Aviva unveils plans to expand proposition for IFAs
Aviva UK Life aims to strengthen its relationship with IFAs next year with “exciting new plans” and products, its chief executive has revealed.
David Barral said the life company has been building a protection proposition that will allow advisers to “simply and efficiently” tailor the range of protection products, such as critical illness and personal accident cover, to suit the needs of clients.
He added: “This is about creating a point-of-sale system for IFAs that is efficient and leads to greater premiums by the consumer. We will continue to build on our protection business in the IFA market and have exciting plans to bring to the IFA market in 2012.”
Mr Barral’s comments came on the back of Aviva’s third quarter results that showed the company gained market share, driven largely by sales in group personal pensions and individual annuities.
In the nine months up to September, life and pension sales were up 6 per cent to £8.06bn, compared to the same period last year, while general insurance and health net written premiums were up 10 per cent.
Sales of group personal pensions increased 68 per cent in 2011 with 564 new schemes and 134,000 new members. The sales saw Aviva increase its market share to 15 per cent, bringing the number of schemes it manages to 30,000.
In the individual annuity space, sales increased 20 per cent, representing a 23 per cent market share, and protection sales were up 2 per cent to £749m.
Bulk purchase annuities were down 37 per cent to £342m, but Mr Barral said this would be boosted as companies look to derisk their pension schemes in 2012.
He said auto-enrolment presented opportunities for the company, as did the shift from defined benefit to defined contribution schemes in the private sector.
Mr Barral said: “On the savings side our primary focus is workplace pensions. We are in a position to support advisers, employers and employees in terms of making pensions easy and accessible, but also include other savings vehicles such as Isas.
“Our individual annuity sales were boosted by the baby-boomer generation coming through so it is a growth market for us. However it is not just annuities, but equity release as well. We are really beginning to build a comprehensive suite of at retirement solutions.
“The short-term nature of economic conditions mean we have to be realistic and plan sensibly. It is a fairly uncertain time for the industry and customers alike. However the long-term fundamentals of our business are hugely attractive.”