But I fear many are missing a trick and not yet picking up on the biggest threat to them – the Internet. Just as banks’ futures will be seriously impacted by the Internet – so will Providers’ unless they wake up and smell the coffee. See this article: http://www.ifalife.com/articles.asp?AID=121

Whilst the Internet is a big threat, it also offers huge opportunity. Social networking websites offer new and potentially very powerful distribution routes for Providers, giving them the potential to significantly cut costs whilst increasing their visibility and the perceived value of their proposition (particularly to IFAs). Providers who think that social networking websites are the exclusive domain of teenagers need to think again and do their research properly.

Some Providers are starting to recognise the opportunities by at least seeking out where IFAs hang out on the Web – IFA Life being just one example. But for the most part, as an industry, Providers now really need to take this opportunity to have a good, long hard look at what they are missing out on – and what might kill a few of them off.

Philip Calvert