Expanding on a statement from BT which heralded its “two-year dream run” in the financial advice market, the group’s head of life insurance, Phil Hay, told ifa research was key.
“Our success really boils down to the flexibility we offer, rather than just the products,” he said.
“We felt there was a great lack of innovation in the financial advice industry and did a lot of research looking really closely at how advisers work with clients and the processes and policies they used and the way they interact.
“As a result we built something that offers flexibility in terms of remuneration and acts as a virtual office, because following our research that’s what we felt advisers want and need.”
Hay said he expects BT’s life insurance product model to be used as a blueprint by other service providers. “The second you put something out that’s innovative, others are going to copy it,” he said.
BT has benefitted from being new to the market and unburdened by legacy issues, Hay said, as well as a more general increasing appreciation for life insurance products from advisers.
“Life insurance has grown exponentially as priority for financial advisers,” he said. “I think it’s now a core part of a holistic approach to looking after a client’s total financial needs.”
Without providing specific details, Hay said BT will continue down the path of “customer-centric focus, innovation and simplification” and will keep targeting and researching the advice market.
The products are wonderful, the big however is the administration and commission systems, unfortunately they are woeful at this time and BT will not reach there immense potential with non tied bank advisers until they are sorted.