Paper-based transactions to virtually disappear
Focus surveyed over 60 per cent of the UK's leading life and pensions product providers on the uptake of electronic transactions to set an industry benchmark. In 2001, these providers received an average of 2.8 per cent of their transactions electronically with a range of 1% to 5%. The value of transactions received electronically represented between 1% and 7% of their total new business.
Focus' research has shown a trend towards multi channel distribution strategies within the life and pensions market, with providers using electronic trading through a number of channels to market including consumer Internet sites, IFA portals and extranets, tied agents and direct sales. One provider was already transacting business electronically across all these channels last year.
IFA extranets currently deliver the majority of electronic new business, with 78% of transactions being delivered through individual product providers' extranets. This will remain a significant channel with providers forecasting that 41% of electronic transactions will be delivered via this route in five year's time.