Auto-enrolment will offer business opportunities to advisers

Almost three-quarters (72%) of group risk advisers believe that auto-enrolment will present them with new business opportunities, according to research by Canada Life Group Insurance.

The research of 100 group risk intermediaries found that 68% of respondents believe that organisations will review their benefits on offer to staff as they prepare for auto-enrolment and the incoming pension reforms.

However, a fifth (20%) think that the changes will have a negative impact on the group risk market, because employers will reduce their expenditure on benefits to make sure that they can afford to comply with the required pension contributions.

Only 15% believe that employers will shy away from the additional administration of implementing both new benefits and pension schemes at the same time.

With the retail distribution review (RDR) coming on 31 December 2012, 43% of respondents think the size of the group risk market will remain the same because advisers will find it too difficult to move across from auto-enrolment responsibilities.

A small number (13%) believe there will be an initial increase in the number of intermediaries moving across to the group risk market.

Paul Avis, sales and marketing director at Canada Life Group Insurance, said: “This is a hugely exciting time for the group risk market.

“Auto-enrolment is one of the biggest legislative game-changers of the past few years, and employers will have to adapt to ensure that they meet its requirements and look for additional revenue streams.

“As a result, there are many opportunities for advisers to approach new employers, or encourage their existing ones to review their employee benefits at the same time as they do with their workplace pension schemes.

“At the same time, the retail distribution review may draw new advisers to the group risk market, as they undertake the additional training needed to meet its requirements.

“Therefore, this seems the ideal time for providers to consider how they can support intermediaries through both of these, and help them to secure the opportunities that are available to them.”

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