The return of bancassurance has been predicted by some industry figures.
Speaking at the Marketforce Future of Life and Pensions conference yesterday (13 June), it was predicted that banks could make a comeback to the advice market but with different models.
Ronnie Taylor, distribution director of Scottish Widows, said: “We have seen it absolutely decimated over the last few years.
“But I think there is an opportunity for consumers that don’t have a relationship with an intermediary.
“I think the traditional bancassurance model is well gone but there could be a new model involving retail banking clients. I think there is a huge need for that.
“How it is delivered will have to be very different to how it was done in the past – not least because we will have fewer physical branches.”
Data compiled last year by Swiss Re showed the number of UK life insurance policies sold without an intermediary jumped to 115,633 last year, up from 36,586 in 2014.
At the same time, sales of the policy via banks plummeted 48 per cent.
In 2014 bancassurance advisers sold 234,278 new policies, which fell to 122,250 last year.
Rob Hudson, head of digital distribution at Aberdeen Asset Management, said: “I think the central ingredients of the bancassurance model will return and is returning.
“The banks have got an enormous open goal but you could argue they have had one for the last few decades in having that real estate.
“I think there are challenger banks as well as retail stores. I think that mixture will return and I think it will be very healthy but I don’t think it will be an exclusive opportunity for banks.”
Earlier this year the Financial Conduct Authority revealed that half the companies working with its advice unit are banks, with five looking to offer some form of automated advice.
Both Royal Bank of Scotland and Santander have made returns to the advice market.
damian.fantato@ft.com
