Insights - The Strategic Dimension (Risk and Financial Services): March 2010

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This publication focuses on understanding and exploiting the sources of competitive advantage in today’s rapidly changing financial services environment. This edition considers some of the themes that will shape the year ahead. Four key areas for 2010 have been highlighted: customer retention, retail distribution, Solvency II and the equity release market.

 

Portfolio maximisation: making the most of your in-force portfolio
By Colette Dunn
With focus still very much on profit, attracting and retaining the most profitable customers is fundamental. By combining multi-factor quantitative techniques with qualitative research, companies can robustly predict – and influence – customer behaviour.

The RDR in 2010: a step forward or another turn on the merry-go-round?
By Sarah Luheshi
The Retail Distribution Review has yet to be finalised and, at the time of writing, we are awaiting further FSA announcements and another Policy Statement during March 2010. The uncertainty is compounded by the possibility of a new government. However, the industry has to continue to move forward, despite these uncertainties.

Solvency II: the strategic dimension
By Mike Williams
The preparations for Solvency II legislation in 2012 are gaining pace. While there is still debate on the details, the fact is that the level of solvency capital that insurers hold, and the form in which it is held, will change. This has strategic implications in terms of product and growth strategy.

Equity release: is there a future?
By Sandra Gabriel
The last decade has witnessed strong sales growth for equity release and yet the total market size is only a tiny percentage of its potential. With individuals having a greater need to self-fund retirement, and with the proportion of household wealth tied up in property equity, it is troubling to see major players leave the market.