Royal London is seeing increasing numbers of advisers, who previously have not focussed on protection, now seeking to write business themselves as a result of consumer duty.
In its interim results published today (August 2) the business revealed it continued to see advisers interested in underwriting in house or referring to a protection specialist since the implementation of the regulation.
It also showed Its operating profit before tax was up 13 per cent in the first half of the year, whichit put down to a growth in workplace pensions and continued relationships with financial advisers.
The operating profit before tax was £144m compared with £127m in the first half of 2023.
Protection new business sales increased eight per cent to £399mn following an increased focus on HNW customers, according to the provider.
It comes more than a year after Royal London purchased Aegon’s individual protection business, welcoming nearly 400,000 new customers and their advisers into the business.
The provider’s flagship investment solution the ‘Governed Range’ attracted net inflows of £1.5bn with assets under management increasing to £66bn.
Pensions
The results showed overall pensions new business sales were up 3 per cent at £4.4bn with workplace pension sales growing by 11 per cent but individual pension sales reducing by 3 per cent.
Barry O’Dwyer, group chief executive, said while he understood pensions were viewed as being able to boost UK economic growth he urged the government to remember the primary role of pensions.
“It is important to remember the primary role of pensions is to fund customers’ retirement," he said.
"The new government has an opportunity to build on the success of automatic enrolment by creating a long-term plan that would have a positive impact on retirement outcomes while also generating investment to help finance growth,” he added.
The provider also pointed out it was a strong advocate for the FCA’s advice guidance boundary review.
It said: “In May we published our UK financial resilience report, looking at how cost of living challenges have affected retirement savings and plans.
“While overall the survey indicated the financial position of some consumers has improved recently, it also identified people’s retirement plans have been significantly affected.
“This comes at a time when the advice gap continues to widen. We remain strong advocates for the importance of financial advice and guidance to help people ensure that they are preparing for life shocks and saving enough for life after work.
“Only a small percentage of people pay for advice but, for those who do, it’s normally a positive experience. We are supportive of the ongoing FCA advice guidance boundary review which aims to make it easier for people to access advice and guidance when needed.”
Royal London revealed it had made enhancements to its mobile app and digital portals to help make customers more “financially resilient”.
This included adding the option to update beneficiaries on the app, the introduction of
retirement planning and pension options tools as well as offering a more personalised financial wellbeing service.
