A recent review will influence the ways in which people purchase life insurance, changing the commission structure and allowing customers to become better informed and better advised. The Financial Services Authority has now launched the retail distribution review, and the effect on the market will soon be noticed.
The FSA has been trying to improve the pensions, investment and life insurance markets for several years. Serious moves forward by the UK insurance industry has gone some way to repair damaged reputations and an industry on a low. However, concerns do remain.
The assistant director of retail distribution at the Association of British Insurers, Alex Roy, reportedly commented: "Its not that the market is broken, but there are some areas that are not working as they should and are in need of repair. I don't think we need to be afraid of selling in this industry, but if you are getting independent advice and you want to have confidence that advice is independent, commissions can hide the costs, making it less clear and trustworthy."




