- EBCs see increased opportunities for SME and individual clients
- But MetLife research shows need for increased innovation
The implementation of the Retail Distribution Review is increasing opportunities for employee benefit consultants advising companies and individuals, new research* from MetLife Employee Benefits shows.
More than two out of five (43%) of employee benefit consultants believe the RDR has increased their business opportunities among employers looking to review employee benefits packages for staff and 45% say it provides more opportunities to advise on employee benefits for individuals.
The RDR effect is adding to the optimism in the sector following the ongoing introduction of auto-enrolment into workplace pensions – nearly half of EBCs (47%) say their corporate clients are reviewing employee benefits’ packages as they start to consider the implementation of auto-enrolment.
That is translating into increased business levels – 44% of EBCs are forecasting growth for their companies in 2013 with an average rise of 12% in business forecast.
Tom Gaynor, Employee Benefits Sales Director of MetLife UK said: “The employee benefits market is adapting well to the introduction of RDR with a strong focus on addressing the opportunities available from both employers and employees who will value advice.
“The ongoing implementation of auto-enrolment is adding to the momentum in the market as it clearly makes sense for employers to look at their overall employee benefits offering when they are introducing or strengthening pensions packages.”
The research however identifies concerns about existing employee benefits products – 70% of EBCs say they would like to see more innovation from providers. There also remains a degree of pessimism with 13% of EBCs predicting their business will contract this year while 34% expect their business to tread water.
MetLife is one of the fastest-growing life and pensions groups in the UK and its Employee Benefits division has its HQ in Brighton**. Employing around 150 people, it is the UK hub for the sales and administration of its employee benefits and individual protection businesses.
* Research conducted by Vision Critical among a nationally representative sample of 121 employee benefit consultants between January 4th and January 16th 2013.
** MetLife’s Brighton office is situated at Invicta House, Trafalgar Place, BN1 4FR
