12 June 2006

The success of online insurance sales could lead to face-to-face sales disappearing altogether.

Insurance experts Deloitte has said that over the next decade insurance sales could follow the trend set by travel agents, cutting out the middle man.

However at the moment, insurance sales through an independent financial advisor still account for over 70 per cent of UK insurance sales, according to Reuters.

Scott Winslow, head of financial services at Deloitte Research, commented: "The same thing happened with travel agents. Why should I pay you ten per cent commission to take an order?"

"Continuing to sell products that lose money from the moment you sell them is a losing proposition.

"It's not a question of if you'll see a shift in the market, but when."

Deloitte also stated that it believes more complex insurances such as life insurance will follow suit, while pensions could possibly become widely available online.

Insurance sales for products like travel insurance and car insurance are constantly evolving, with new technology such as hybrid cars often requiring an entirely new policy.

© Adfero Ltd

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