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Employee Benefits News

Latest News
03 Sep 2012

Advisers See Auto-Enrolment As Opportunity To Boost Group Protection Sales

Almost 60% of financial advisers and employee benefit consultants (EBCs) in the UK believe there is an opportunity for stronger group protection sales that arises from auto-enrolment, according to a study from ORC International released last week.

The figures from the global market research firm show that 57% of respondents to the group protection tracker survey expect a rise in opportunities for sales of group protection products, against 40% in the 2011 study, showing an increasingly positive view of the expected change.

Another 23% said that existing cover would be reduced by employers in order to fund new pension arrangements, down from 25% in last year's survey. Auto-enrolment is expected to have little or no effect on group protection business according to 13% of respondents, against 30% in 2011.

Most of the respondents that expected little impact from the reforms were smaller or regional firms, while 64% of leading EBCs and national advisory companies agreed that auto-enrolment presented an opportunity, versus 38% last year. Some 156 advisers and EBCs took part in the survey in 2012, up slightly from 151 in 2011.

ORC International's research director Vicky Whiting said that the introduction of auto-enrolment would enable advisers to underline the benefits of group protection as they support new and existing corporate customers with the new requirements for workplace pensions.

Auto-enrolment - as part of which all employees in the country will have to be enrolled into a workplace pension scheme - will begin rolling out in October, with all UK companies to be phased in within five years.

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