Has compliance knocked the insurance adviser market?

The rate of new business generation appears to be down. After years of steady growth, the amount of new business being done has been disappointing (for the industry as a whole) for a year now.

Although we all like to talk positively of regulation bringing best practice a number of advisers are saying that it has cost them time and money over the past two years, and that’s why they are writing less business.

We like to be positive about regulation. In the medium term it should yield benefits: higher consumer confidence, better products, better advice, and best practice in advice-giving.

Many of those things could lead to more business, holding the view that they will is almost an article of faith. Without it a kind of sullen minimalism could creep into the industry response to the regulator. I think it is too early to say that is happening. Instead I think that most companies and advisers are generally positive in their views. But unless more progress is made soon the mood could harden.