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IFAs should welcome Solvency II: 3i Infotech
IFAs must become more “tech-savvy” with the onset of Solvency II, the director of insurance and banking for 3i Infotech has warned.
Faisal Khan said insurance companies will inevitably turn to technology to find ways of driving down costs due to the extra regulatory burden.
This means they will use more web portals and phone apps to communicate information about their products to financial advisers.
He said: “That is why IFAs must ensure they can keep up to date with technology. I think Solvency II will result in an information revolution so it is important advisers remain tech-savvy.”
However he insisted that intermediaries should not fear the regulatory changes as it will help them with their due diligence processes. For example, insurance companies will have to give details on how well they are complying with Solvency II.
Mr Khan added: “Some IFAs feel concerned about Solvency II, but they should welcome it. Advisers will now have a rating of how compliant the insurance company they are recommending is. This will boost the competitiveness of the industry and, when that happens, products thrive.”
Ray Prince, chartered financial planner for Tyne and Wear-based Rutherford Wilkinson, said: “All advisers should be keeping up to date with how they can use technology in their business, regardless of how providers are looking to develop their businesses. Technology is changing every year and is fantastic to help make IFA businesses more efficient.”
Gemma Langlands, financial planner for County Durham-based Eldon Financial Planning, said: “Technology is a core part of our everyday business. It allows us to work efficiently, share information and service our clients well.”
