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Changing Face of FinancialServices Selling in Ireland
Willie HolmesWednesday 9th February 2011
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3 Reasons for Hope
1. Strong Demand1. Strong Demand
3. Distribution Strength3. Distribution Strength
2. Need for Advice2. Need for Advice
3
Pensions
► Complex Business
► From Wealth Management to Retirement Planning
► Ageing Population
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Pensions
And as this graph shows 26% of the population will be over 65 by 2041
0
5
10
15
20
25
30
1926
1936
1946
1951
1961
1966
1971
1976
1981
1986
1991
1996
2006
2011
2016
2021
2026
2031
2036
2041
65+
co
ho
rt a
s %
of
tota
l p
op
.
11%
26%Population is getting older - Significant increase in 65+ cohort from 2016 on -
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Savings & Investments
Lump Sums
Regular Savings
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The Lost Decade for Equities
Annualised 10 Year Return in Local Currencyto 30th Sept 2010
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
World Europe USA Japan
Source: Factset
• “Returns in the 10 years after a ‘lost decade’, defined as any 10-year period in which US equity returns were below the rate of inflation, average out at a healthy 11 per cent per annum in real terms,” according to Fidelity”
Past Performance is not a reliable indicator of future performance
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Savings & Investments
Lump Sums
Regular Savings
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Life Assurance
€1,000,000,000 in Claims* paid in last 3 years€1,000,000,000 in Claims *
…paid in last 5 years
*Irish Life Stats 2006 - 2010
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Life Assurance
Monthly cost of €500,000 Life Cover for 20 years
Age* 1981€
2011€
%
30 84.77 28.51 -66%
40 225.10 66.86 -70%
*Next birthday; non smoker; Irish Life rates
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Technology
From ratebook to iphone!
From ratebook to iphone!
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Distribution
Increased Regulation
Brokers have largest Share
Fee vs. Commission2009 2010
(H1)
Brokers 67% 63%
Banks 17% 20%
Direct 16% 17%
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Characteristics for Success
Integrity Pride
Confidence Leadership
Love for the Customer
ResiliencePlanningEnergy
Communication