NEW YORK, March 12 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Channel Metrics: Consumer Distribution Trends in UK Financial Services - Overview Report- February 2010 Edition

http://www.reportlinker.com/p0181155/Channel-Metrics-Consumer-Distribution-Trends-in-UK-Financial-Services---Overview-Report--February-2010-Edition.html

The Channel Metrics series is the most detailed and up-to-date guide to distribution trends in consumer financial services in the UK available on a published basis. It covers 28 separate retail financial products and services, giving it a unique level of detail and information on products that are ignored elsewhere. It analyses: how consumers acquire these products and services - e.g. online, telephone, post or in person; from whom they acquire them - e.g. direct from the provider, through intermediaries or affinity schemes; and how often they acquire them - i.e. how many consumers acquired a product in the last year, either for the first time or by switching provider instead of renewing or carrying on with an existing product. Findings from this survey are compared with those from 2005 and 2007 to show trends over time. Each of the 28 products is covered by its own briefing, while an overview report features them all plus additional, comparative analysis of distribution trends. Overall, the Channel Metrics series offers detailed and unique insights into trends in usage of distribution interfaces and channels across 28 distinct financial products and services - with a dedicated briefing having been produced for each - as follows: Car and home - motor insurance, breakdown recovery insurance, extended warranties (for cars), household insurance, home emergency insurance; life and health - life insurance, critical illness insurance, private medical insurance, dental insurance, health / hospital cash plans, personal accident insurance; banking products and associated insurance - mortgages, mortgage payment protection insurance, personal loans, loan payment protection insurance, car finance contracts, credit cards, prepaid cards, travel money; niche insurance - annual travel insurance, single trip travel insurance, pet insurance, mobile telephone insurance, extended warranties (for electronic appliances); savings and investments - interest-bearing savings deposits, cash ISAs, Child Trust Funds, personal / stakeholder pensions. Key questions addressed by the research include the following. How has the credit crisis affected sales and switching? Has it hurt some channels more than others? What is the 'brand stretch' of commercial partners? Which products can a supermarket sell? Can automotive associations such as the AA and RAC stretch from breakdown recovery to home emergency insurance? Does the Post Office brand and branch 'footprint' work for all products? Is the advance of online aggregators from general insurance into banking succeeding? Is customer loyalty increasing or decreasing? Is there a 'ceiling' to switching rates? What financial products are still sold face-to-face, and is this on the decline across the board? What is the impact of packaged bank accounts on the distribution of products bundled with them? What are the distribution trends for rarely researched products such as car finance contracts, Child Trust Funds, dental insurance, extended warranties, home emergency insurance and prepaid cards? Channel Metrics: Consumer Distribution Trends in UK Financial Services is based on the results of an online survey of c. 2,500 consumers arranged by Tpoll during November and December 2009.

TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY ................... 1

Research background and structure ....... 2

Four of the financial products investigated are held by a majority of respondents ....... 2

High volumes of sales each year are driven by high levels of switching… ................... 2

… although switching rates have fallen for lending products amid the credit crisis ...... 3

Face-to-face distribution remains important for banking products and related insurance… ................ 3

… while the Internet is still increasing its share of motor and household insurance ..... 3

Though inbound telephone sales are in decline, outbound telephone sales are increasing their

share......... 4

Postal sales have dropped substantially - have they reached the bottom? .................. 4

Aggregators continue to grow general insurance sales, but have not broken through for banking ..... 4

Non-financial commercial partners have grown their share of sales, driven by specific products… ... 5

… but not-for-profit affinity partners have had little impact outside trade associations and unions .... 5

Worksite distribution is strong for pensions and health-related insurance .................... 5

Banks and building societies have lost a significant share of sales both as direct providers… .......... 6

… and as distributors of other products, outside packaged accounts ... 6

1.0 INTRODUCTION ....... 7

Research rationale ........ 8

A number of motivating factors underpin the Channel Metrics report and series of briefings .............. 8

Updating the results from the 2005 and 2007 surveys ... 8

Analysis of consumers making an active distribution choice ................. 8

Analysis of consumers purchasing or taking out financial services in prior years ......... 8

Analysis of distribution interfaces ............. 8

Analysis of specific distribution channels. 9

Expanding upon the results from the 2005 and 2007 surveys ............... 9

Finaccord ...................... 11

Channel Metrics briefings ....................... 11

Other UK consumer research publications ................... 12

UK affinity and partnership marketing research publications ............... 13

UK small business financial services research publications ................ 13

2.0 CHANNEL COMPARISONS .......... 14

Introduction .................. 15

Overall customer take-up rates, 2009 ....................... 16

Four products are held by more than half of all respondents ............... 16

Available customer base, 2009 .......... 18

The largest markets are driven by high levels of switching, not by new customers… 18

… except for products with specific characteristics or high growth rates .................... 18

Trends in switching behaviour, 2005, 2007 and 2009 ..................... 21

Switching rates have fallen for lending products when compared to insurance and savings .......... 21

The credit crisis has reduced switching because lenders have ceased to chase new business ... 21

… but given the chance, consumers are still becoming less loyal ....... 22

Distribution interfaces - 2009, 2007, 2005 and all previous years compared ..... 25

Overview ....................... 25

Internet and outbound telephone sales are the two growing distribution interfaces ... 25

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

Face-to-face environment ................... 27

Six products are taken out face-to-face by more than half of all customers ................ 27

Face-to-face distribution is becoming irrelevant for core general insurance products 27

Internet .. 29

Major insurance products and cards are taken out online by most consumers .......... 29

Personal accident and private medical insurance distribution go against this trend ... 29

Inbound telephone ....... 31

Inbound telephone sales have a growing role in specific niches ......... 31

Outbound telephone .... 33

Personal accident insurance is distributed by outbound calling ahead of other interfaces .............. 33

Outbound telephones sales are increasing their share of sales for 19 out of 28 products ............... 33

Post ........ 35

Will postal sales grow their share of sales in the future? ...................... 35

Distribution channels - 2009, 2007, 2005 and all previous years compared ...... 37

Overview ....................... 37

Distribution has shifted to online aggregators and non-financial commercial partners .................. 37

… squeezing commission income for banks and building societies amid the credit crisis ............... 37

Direct sales ................... 39

Savings products are dominated by the direct channel, but this has weakened a little… ................ 39

… while direct providers are successfully fighting back for cards and travel products ..................... 39

Advisers, brokers and aggregators ... 41

Financial advisers, and loan, mortgage and insurance brokers ........... 41

Loan and mortgage brokers have increased their share of a shrinking market… ...... 41

... while financial advisers have lost ground for core life and pensions products… .... 41

... and general insurance brokers' share of sales may have bottomed out ................. 41

Online aggregators ........ 43

Aggregators' strength in core general insurance products has not extended to banking ................ 43

Not-for-profit affinity groups ............... 45

Automotive clubs ............ 45

Car clubs play a limited role even in automotive-related financial services................. 45

Charities . 47

Credit card sales by charities lag behind the frequency with which they offer them ... 47

Educational institutions ... 49

Growth in this channel comes from a very low point, and needs time to consolidate a customer base

................ 49

Professional and trade associations ...... 51

Pensions and health-related insurance are the leading products for this channel ...... 51

Trade unions .................. 53

Although active as affinity partners in many areas, the influence of trade unions is limited ............. 53

Financial partners ........ 55

Banks and building societies (acting as intermediaries) ....................... 55

The credit crisis has reduced the share of business held by banks and building societies .............. 55

Packaged accounts are responsible for their high share of sales in mobile telephone insurance .... 55

Credit card companies (acting as intermediaries) ......... 57

Niche insurance products may offer a better opportunity than mainstream but commoditized lines .57

Insurance companies (acting as intermediaries) .......... 59

Insurers up-sell from their core policies rather than cross-sell unrelated financial products ............. 59

Non-financial commercial partners ... 61

Automotive associations . 61

The brand strength of automotive associations has not extended to other financial services .......... 61

Car dealers and manufacturers ............. 63

Car finance contracts have been popular through this channel as other lenders have weakened… 63

… but three major car manufacturers have discontinued their co-branded credit cards .................... 63

Catalogue and other retailers ................. 65

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

The share of new customers of catalogue and other retailers is higher for prepaid cards than for

credit cards ..................... 65

Estate agents ................. 67

Mortgages are the key product for estate agents, supplemented by home insurance ...................... 67

Football and other sports clubs .............. 69

A wide range of financial products are offered by clubs, but uptake of them is low .... 69

Loyalty schemes ............ 71

Pet, accident and health insurance are the strongest areas for loyalty schemes ....... 71

Magazine, newspaper and other media entities ........... 73

A wide range of products are on offer, although only two have a significant share of sales ............. 73

The Post Office .............. 75

Travel-related products are the main areas of distribution strength of the Post Office ..................... 75

Supermarkets ................. 77

An increased emphasis on financial services has not led to a greater share of sales overall ........ 77

… but prepaid cards and travel money are promising areas for development ........... 77

Utility (electricity, gas and water) companies ................ 79

Utilities are losing share of sales for home emergency insurance, their only significant product ..... 79

Sector-specific distribution channels...... 81

As distribution spreads across a multitude of channels, specialists are losing their share of sales .. 81

Travel agents and tour operators have made progress in selling annual travel insurance ............... 81

The worksite ................. 83

The worksite channel has increased its share of sales for core products since 2007 83

Employer funding is more common for pensions than for protection policies ............. 83

3.0 PRODUCT ANALYSIS .................... 86

Introduction .................. 87

Motor insurance ........... 89

Switching rates and brand new sales - 2009............ 89

Switching rates are stable but high for motor insurance ....................... 89

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared ... 90

Growth in online sales is slowing, as this interface reaches saturation point .............. 90

Distribution channels - 2009, 2007, 2005 and all previous buyers compared .... 92

Overview 92

Direct sales by insurance companies held their ground between 2007 and 2009 ..... 92

Detailed analysis ............ 94

Online aggregators have taken market share at the expense of all other major channels .............. 94

Data tables .................... 96

Breakdown recovery insurance ......... 98

Switching rates and brand new sales - 2009............ 98

The annual switching rate appears to be increasing for this form of insurance .......... 98

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared ... 99

The Internet is continuing to gain ground as a distribution interface .... 99

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 101

Overview ..................... 101

Direct sales by automotive associations constitute a shrinking market .................... 101

Detailed analysis ......... 103

Policies packaged or bundled on a wholesale basis account for a high proportion of this market . 103

Data tables ................. 105

Extended warranties for cars .......... 107

Switching rates and brand new sales - 2009......... 107

The switching market is nearing the same size as the new extended warranty market .................. 107

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 108

Face-to-face sales remain the most important interface for extended warranties ... 108

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 110

Overview ..................... 110

Aggregators and brokers are winning market share from non-for-profit affinity groups .................. 110

Detailed analysis ......... 112

Car makers and online aggregators are the rising channels for extended warranties for cars ....... 112

Data tables ................. 114

Household insurance 116

Switching rates and brand new sales - 2009......... 116

An increase in switching has more than compensated for a drop in sales to new buyers .............. 116

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 117

The Internet and outbound telephone sales are in the ascendant .... 117

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 119

Overview ..................... 119

Financial partners' gains in household insurance were reversed between 2007 and 2009 ............ 119

Detailed analysis ......... 121

Online aggregators now hold over a third of sales to switchers and new buyers .... 121

Data tables ................. 123

Home emergency insurance ............ 125

Switching rates and brand new sales - 2009......... 125

The annual switching rate recorded for 2009 is almost identical to that for 2005 .... 125

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 126

Patterns in interface usage are driven by different home emergency insurance formulae ............. 126

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 128

Overview ..................... 128

Most sales of home emergency insurance occur on an intermediated basis .......... 128

Detailed analysis ....... 130

The share of sales of electricity, gas and water companies is clearly under intense pressure ....... 130

Data tables ................. 132

Annual travel insurance ................... 134

Switching rates and brand new sales - 2009......... 134

Annual travel insurance is characterized by a high switching rate .... 134

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 135

Online customers are more likely to switch policy than those using other interfaces ...................... 135

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 137

Overview ..................... 137

Packaging with added value bank accounts is a very significant feature of this market ................. 137

Detailed analysis ......... 139

The Post Office is one of the largest specific distributors of annual travel insurance ..................... 139

Data tables ................. 141

Single trip travel insurance .............. 143

Switching rates and brand new sales - 2009......... 143

Single trip travel insurance is characterized by an extremely high switching rate ... 143

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 144

Close to three quarters of single trip travel policies are bought via the Internet… ... 144

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 146

Overview ..................... 146

… with online insurance aggregators and brokers accounting for a significant proportion of this .. 146

Detailed analysis ......... 148

Traditional affinity and corporate partners find the going tough in a fragmented market ................ 148

Data tables ................. 150

Pet insurance ............ 152

Switching rates and brand new sales - 2009......... 152

The annual switching rate in 2009 remained little changed from 2007 .................... 152

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 153

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

The distribution share of postal sales has shrunk consistently over time ................. 153

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 155

Overview ..................... 155

The distribution share of insurance aggregators and brokers appears to have reached a plateau 155

Detailed analysis ......... 155

Distribution systems for pet insurance are becoming increasingly fragmented ....... 157

Data tables ................. 159

Mobile telephone insurance ............ 161

Switching rates and brand new sales - 2009......... 161

The annual switching rate recorded for 2009 is similar to that for both 2005 and 2007 .................. 161

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 162

Patterns in interface usage are driven in part by a shift towards wholesale distribution.................. 162

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 164

Overview ..................... 164

Banks, through packaged accounts, and mobile retailers and operators dominate this market ..... 164

Detailed analysis ......... 166

Packaged policies are accounting for a progressively higher market share overall 166

Data tables ................. 168

Extended warranties for electrical and electronic appliances ... 170

Switching rates and brand new sales - 2009......... 170

Once bought, very few customers switch their warranty to an alternative provider . 170

Distribution interfaces - 2009, 2007 and all previous buyers compared .......... 171

Face-to-face sales remain the most important distribution interface in this market . 171

Distribution channels - 2009, 2007 and all previous buyers compared ........... 173

Overview ..................... 173

Channels other than manufacturers and retailers command only a limited share of this sector ..... 173

Detailed analysis ......... 175

Retailers appear to be outperforming manufacturers in this market . 175

Data tables ................. 176

Life insurance ............ 178

Switching rates and brand new sales - 2009 ............. 178

Fewer customers switch provider than take out a new life insurance policy ............ 178

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 179

Face-to-face and inbound telephone sales have declined since 2007 ..................... 179

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 181

Overview ..................... 181

Distribution has moved from direct sales to a multitude of partners, especially commercial ones . 181

Detailed analysis ......... 183

Life insurance distribution has fragmented, with no single channel in the ascendant ..................... 183

Data tables ................. 185

Critical illness insurance .................. 187

Switching rates and brand new sales - 2009......... 187

One consumer in seven holds critical illness insurance .................... 187

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 188

Distribution has migrated from face-to-face sales to outbound telephone sales ..... 188

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 190

Overview ..................... 190

Affinity and partnership channels have gained share substantially since 2007 ....... 190

Detailed analysis ......... 192

The complexity of critical illness insurance has limited the growth of aggregation .. 192

Data tables ................. 194

Private medical insurance ................ 196

Switching rates and brand new sales - 2009......... 196

A small increase in the annual switching rate was registered for 2009 .................... 196

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 197

There is strong evidence for growth in inbound telephone sales of private medical insurance ...... 197

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 199

Overview ..................... 199

The results suggest that a higher share of sales than ever is being realised through the .....................

worksite… .................... 199

Detailed analysis ......... 201

… with other specific distribution channels related to employment also apparently faring well ...... 201

Funding methods for policies acquired through the worksite .. 203

In around a half of cases, employers fund the entire cost of private medical cover themselves .... 203

Data tables ................. 204

Dental insurance ....... 206

Switching rates and brand new sales - 2009......... 206

New or switching customers made up over one in five of all customers in 2009 ..... 206

Distribution interfaces - 2009 and all previous buyers compared .................... 207

Inbound and outbound telephone sales are moving up at the expense of face-to-face

transactions ................. 207

Distribution channels - 2009 and all previous buyers compared ...................... 209

Overview ..................... 209

Sales of dental insurance are split among a fairly broad range of partner types ..... 209

Detailed analysis ......... 211

The distribution share of dentists appears to be under pressure from competing channels ........... 211

Funding methods for policies acquired through the worksite .. 213

For worksite-distributed dental insurance, funding is mostly by the employees themselves .......... 213

Data tables ................. 214

Health and hospital cash plans ....... 216

Switching rates and brand new sales - 2009......... 216

Annual switching rates are comparatively low for customers with health or hospital cash plans.... 216

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 217

Sales split on a comparatively even basis between the five competing distribution interfaces ....... 217

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 219

Overview ..................... 219

Worksite marketing and other partner channels squeeze the distribution share of direct sales ..... 219

Detailed analysis ......... 221

Various types of affinity and corporate partner are active as distributors in this market ................. 221

Funding methods for policies acquired through the worksite .. 223

Almost half of customers acquiring these policies through the worksite pay the full cost ......................

themselves .................. 223

Data tables ................. 224

Personal accident insurance ........... 226

Switching rates and brand new sales - 2009......... 226

The annual switching rate recorded a minor increase in 2009 ......... 226

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 227

Outbound telephone sales of personal accident insurance are growing strongly .... 227

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 229

Overview ..................... 229

Excluding the worksite, sales are split quite evenly across the other five generic channels ........... 229

Detailed analysis ......... 231

Banks and building societies achieved a significant distribution share across all years surveyed . 231

Data tables ................. 233

Mortgages .................. 235

Switching rates and brand new sales - 2009......... 235

Both new mortgage lending and remortgaging have fallen sharply relative to 2005 and 2007 ...... 235

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 236

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

The use of distribution interfaces by mortgage borrowers shows relatively little variation over time236

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 238

Overview ..................... 238

Prior to 2009, most mortgages were taken out directly from the ultimate lenders… ....................... 238

Detailed analysis ......... 240

… although the evidence of more recent years shows a clear shift towards mortgage brokers ..... 240

Data tables ................. 242

Mortgage payment protection insurance .............. 244

Switching rates and brand new sales - 2009......... 244

Both switching rates and sales to new customers were lower in 2009 than in 2007 ...................... 244

Distribution interfaces - 2009, 2007 and all previous buyers compared .......... 245

Face-to-face sales maintain their share, while remote sales slowly migrate to the Internet ........... 245

Distribution channels - 2009, 2007 and all previous buyers compared ........... 247

Overview ..................... 247

Distribution has become less concentrated, with traditional channels losing market share ............ 247

Detailed analysis ......... 249

Direct sales by insurers and online aggregators have made substantial gains in market share .... 249

Data tables ................. 251

Personal loans .......... 253

Switching rates and brand new sales - 2009......... 253

The general availability of personal loans has fallen sharply relative to 2005 and 2007 ................. 253

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 254

Online loan sales lost ground to face-to-face distribution during 2009 ..................... 254

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 256

Overview ..................... 256

The distribution of personal loans is largely dominated by two generic channel categories… ....... 256

Detailed analysis ......... 258

… albeit a range of affinity and corporate partner channels also have some presence in this ............

market .. 258

Data tables ................. 260

Loan payment protection insurance ...................... 262

Switching rates and brand new sales - 2009......... 262

New sales of loan payment protection insurance have fallen dramatically .............. 262

Distribution interfaces - 2009, 2007 and all previous buyers compared .......... 263

The upselling rate for loans to loan payment protection insurance is only slightly higher face-to-face

............. 263

Distribution channels - 2009, 2007 and all previous buyers compared ........... 265

Overview ..................... 265

Banks and building societies have lost market share to all other channels ............. 265

Detailed analysis ......... 267

Online aggregators now hold over a third of sales to switchers and new buyers .... 267

Data tables ................. 269

Car finance contracts 271

Switching rates and brand new sales - 2009......... 271

New car finance contracts have fallen with the recession ................. 271

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 272

Though face-to-face sales predominate, a substantial proportion of sales are made remotely ...... 272

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 274

Overview ..................... 274

Traditional distribution channels have increased their share of sales ....................... 274

Detailed analysis ......... 276

Car dealerships held a majority of this market in 2009 ...................... 276

Data tables ................. 278

Credit cards ............... 280

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

Switching rates and brand new sales - 2009......... 280

Switching rates have fallen as lenders changed strategy in the recession .............. 280

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 281

Internet sales have leveled off, while the post is now the least important interface 281

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 283

Overview ..................... 283

Non-financial commercial partners are neck-and-neck with financial partners, for the first time .... 283

Detailed analysis ......... 285

Catalogue and other retailers distributed as many new cards as supermarkets in 2009 ................ 285

Data tables ................. 287

Prepaid cards ............ 289

Switching rates and brand new sales - 2009......... 289

New customers in 2009 outnumbered those holding a prepaid card taken out before that year.... 289

Distribution interfaces - 2009 and all previous years compared ....................... 290

The Internet accounts for a majority of sales, and has grown at the expense of inbound telesales ..

............. 290

Distribution channels - 2009 and all previous years compared 292

Overview ..................... 292

Direct sales accounted for nearly a half of cards acquired by switchers and new buyers in 2009 . 292

Detailed analysis ......... 294

Non-financial commercial partners are much more important distributors than online ..

aggregators ................. 294

Data tables ................. 296

Travel money ............. 298

Switching rates and brand new sales - 2009......... 298

Consumers display limited loyalty to travel money providers ............ 298

Distribution interfaces in 2009 ......... 299

Face-to-face transactions dominate the distribution of travel money ....................... 299

Distribution channels in 2009 .......... 301

Overview ..................... 301

Switchers and new buyers prefer foreign exchange companies to banks and building societies .. 301

Detailed analysis ......... 303

The Post Office is the single most important specific channel for travel money ...... 303

Data tables ................. 305

Interest-bearing savings deposits .. 307

Switching rates and brand new sales - 2009......... 307

Nearly a third of consumers with this product opened a savings account in 2009 .. 307

Distribution interfaces - 2009, 2007 and all previous buyers compared .......... 308

Banks and building societies have successfully pushed savings accounts away from the branch 308

Distribution channels - 2009, 2007 and all previous buyers compared ........... 310

Overview ..................... 310

Direct sales continue to be the most important channel for savings accounts ......... 310

Detailed analysis ......... 312

Financial advisers are holding their own against online aggregators ....................... 312

Data tables ................. 314

Cash ISAs .................. 316

Switching rates and brand new sales - 2009......... 316

Six out of ten customers who took out a new cash ISA in 2009 already held another cash ISA .... 316

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 317

Online cash ISA sales are growing, but face-to-face distribution remains dominant ..................... 317

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 319

Overview ..................... 319

Direct sales held their market share in 2009, after losing ground between 2005 and 2007 ........... 319

Detailed analysis ......... 321

CHANNEL METRICS: CONSUMER DISTRIBUTION TRENDS IN UK FINANCIAL SERVICES

Financial advisers directed customers to cash ISAs in 2009 ............ 321

Data tables ................. 323

Child Trust Funds ...... 325

Switching rates and brand new sales - 2009......... 325

Six out of ten customers who took out a new fund in 2009 already held another Child Trust ...............

Fund..... 325

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 326

Child Trust Fund sales shifted from the post to face-to-face distribution between 2007 and 2009 326

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 328

Overview ..................... 328

Two thirds of Child Trust Funds are sold directly by a variety of financial companies ..................... 328

Detailed analysis ......... 330

The Post Office has a larger market share for Child Trust Funds than for simpler savings ..................

products ....................... 330

Data tables ................. 332

Personal and stakeholder pensions ....................... 334

Switching rates and brand new sales - 2009......... 334

More than a quarter of respondents have a personal or stakeholder pension ......... 334

Distribution interfaces - 2009, 2007, 2005 and all previous buyers compared 335

Face-to-face distribution no longer accounts for the majority of pension sales ........ 335

Distribution channels - 2009, 2007, 2005 and all previous buyers compared . 337

Overview ..................... 337

Not-for-profit affinity groups recorded the largest gain in distribution share in 2009 337

Detailed analysis ......... 339

Aggregators are gaining share from financial advisers by policies, but perhaps not by premiums 339

Funding methods for pensions acquired through the worksite 341

The vast majority of pensions sold via the worksite are funded jointly by employer and ......................

employee..................... 341

Data tables ................. 342

4.0 APPENDIX ........... 344

Research sample and mechanics ... 345

Research m

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