The distribution dilemma: Why insurance companies need to change their business models

The world of business is riddled with change and complexity – none more so than the life and pensions industry. Banks, for instance, have long sat on the side‐lines, but now see long‐term savings as a key market to boost revenue growth – should authorities further “iron‐out” the final creases in regulation.

In addition to new competitors, there is a wide range of structural challenges confronting insurance industry competitors. Consumers continue to shun long‐term savings, notably pensions – an UK study in 2002 estimated the savings gap at $50B (ABI, 2002) – with many consumers finding alternative assets...