New Market Report Now Available: Consumer Targeting in Life and Pensions 2010

Nov. 9, 2010 - PRLog -- There has been a multitude of changes affecting the UK life and pensions industry in the last 12 months. The UK life and pensions providers have realized the necessity to adapt to the new consumer environment.

Scope

* Examines the current shape of the life and pensions industry and explores factors that are currently limiting new business
* Highlights key findings from Datamonitor's FS Consumer Insight Survey for the life and pensions markets in the UK
* Provides strategies to help life and pension companies find innovative methods of customer retention and acquisition

Highlights

Alongside the visible impact of the recession, the L&P industry and its consumers continue to face longer-term issues associated with prevailing demographic trends, socio-cultural developments and the wider economy. Consumers have a shortfall in savings and protection with some facing an uncertain prospect towards a comfortable retirement.

The potential for government policies to induce people to consider investment, retirement and protection plans is also in question and the life and pensions industry has continued to lose its relationship with consumers. Providers can seize the opportunity to target new customers and retain their existing customers efficiently to win new business.

Reasons to Purchase

* Identify key consumer segments to target for life, pensions and protection products
* Access analysis documenting the trends behind consumers' attitudes and behaviors
* Provides action points to aid strategic decision making based on the insights analyzed

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/91006_consumer_targeting_in_li...

Partial Table of Contents:

Overview 1
Catalyst 1
Summary 1
EXECUTIVE SUMMARY 2
Table of Contents 3
list of figures 4
List of tables 5
INTRODUCTION 6
PRODUCT OWNERSHIP 7
A third of UK consumers do not hold a savings product 7
Nearly a third of consumers do not hold a savings account and UK personal debt continues to take over the nation's GDP 7
Affordability is a driving factor behind UK consumers stalling their savings 8
Over a tenth of non-savers have no interest in saving at all 9
Consumers are also sacrificing savings to clear their debts 10
Low interest rates have offset the desire to save in deposit accounts 10
Young people are least likely to hold a savings account and have embraced credit as a way of life 10
Pension ownership among UK consumers is stalled by lack of affordability 12
Over 60% of UK consumers do not have a pension 12
People need to save for their retirement but they are hindered by the perception of affordability 13
People are not saving for the future, assuming that they will be looked after by the buckling state system 14
Young people are discounting the value of importance in building up retirement savings 14
However, an ageing workforce will put pressure on people to support retirees 17
It is hoped that NESTs will address the problem of long-term retirement savings 19
UK consumers have under provision of protection insurance 20
Young people do not see protection insurance as the answer to unforeseen events 21
Consumers perceive that they simply do not need protection insurance 23
Consumers are sacrificing adequate financial protection with rising personal debt 25
Consumers are over estimating life insurance costs 25
PROFITING THROUGH RETENTION 26
Existing customers must be retained and understanding their motivations for defection is vital for a retention strategy 26
Customer retention is not cheap, but it is cheaper than losing customers 26
Retention of profitable customers is a major focus area 27
Employers are key facilitators and providers of pensions business to consumers 27
Consumers' inertia causes the majority to take out a pension through an employer where no choice is given 27
Automatic enrollment will help overcome the inertia preventing many people from saving 28
Employees aged over 22 are eligible for automatic enrollment, but policy should encourage people to start saving early 29
Policy must also place emphasis on financial education among young people to increase financial responsibility 30
NESTs aim to target those who are currently not saving enough to give them the retirement income they expect 31
However, the effectiveness of NESTs are in question 32
For some, leveling down employers' contribution through the Personal Accounts scheme will make pension provision worse 33
Employers may be tempted to minimize costs of NESTs through lower employee salaries 33
Price is a bigger motivation factor for UK consumers across all protection products 34
Attracting new customers to protection will be challenging 34
Young Britons seem to be more concerned by price rather than product suitability 36
The price war is not impacting on the protection gap which has increased to GBP2.4 trillion in the UK 36
The economic downturn has encouraged consumers to switch providers 37
Customers are sacrificing policies as lack of affordability becomes an issue during the financial crisis 37
Technology is aiding consumers in their switching behavior 38
Technology is affecting the way protection business is being conducted 38
However, concerns and criticisms are being leveled at non-advised sales 39
New entrants with strong brands and consumer access are intensifying competition 40
CONSUMER ENGAGEMENT 41
Consumers place the low levels of trust in financial advisors and insurers 41
Trust in financial advisors are very low compared to other financial services institutions 42
Aggregator sites have become a trusted source of financial service in the current climate 43
Non-traditional financial service institutions can try to take advantage of higher levels of consumer trust 43
Consumers desire trustworthiness as an attribute in their life and pensions providers 44

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=9100...

About Datamonitor

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Datamonitor's market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.  View more research from Datamonitor at http://www.fastmr.com/catalog/publishers.aspx?pubid=1002

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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