There is a significant chance that group risk could see a big fall off in business due to auto-enrolment as employers assess their overall benefits spend, calculate the range of costs depending on take up of the pension among their workforce and cut costs elsewhere. Of course, there may well be some solid ‘employee benefits as business benefits’ arguments to the contrary, but it is certainly something for advisers in the market to consider. However, perhaps it isn’t all about a shrinkage. Certainly auto-enrolment brings a range of firms into more extensive contact with retail financial services, whether providers and intermediaries.
The link up between Now:Pensions and Ellipse may well point to the fact that some providers seem intent on maximising their chances of growing the market, even if there may be a fall off in business elsewhere. And of course, not all these firms due to be brought under the auto-enrolment umbrella have workforces on low wages. There is always some sort of opportunity along with all the threats.