Independent financial advisers (IFA)
in the UK have a generally positive attitude towards the future of
variable annuities (VA), a study by Sun Life of Canada reveals. The
insurer’s findings are based on a survey of 262 IFAs undertaken in
September 2009.
According to Sun Life, 46 percent of IFAs
believe the VA market is gradually gaining support, with 17 percent
thinking it is “up and coming”. Only 11 percent can never see the
market taking off.
Go deeper with GlobalData
Sun Life noted that sentiment for market
growth is strong, with 54 percent of IFAs expecting a growing
number of advisers to “catch on to the benefits” of VA products in
the coming years, and 71 percent predicting new providers to enter
the market.
Sun Life head of marketing Mark Stopard said:
“These findings show that the IFA market is readying itself for an
increased focus on variable annuities, as clients become more
demanding about what they can expect pre-, at and
post-retirement.”
Stopard continued that there has been a gap in
the UK market which traditional solutions have not been able to
cover.
“The evidence from abroad is that variable
annuity products can provide both the growth and security customers
need,” Stopard continued.
“What this research shows is that advisers are
expecting a similar turn of events in the UK.”
The findings came against the background of a
sharp decline in VA sales in the UK. According to consultancy
Watson Wyatt, sales fell from £343.7 million ($555 million) in the
second quarter of 2009 to £143.1 million in the third quarter.
