1. Changing Face of Financial
Services Selling in Ireland
Willie Holmes
Wednesday 9th February 2011

2. 3 Reasons for Hope
1. Strong Demand
2. Need for Advice
3. Distribution Strength
2

3. Pensions
► Complex Business
► From Wealth Management to Retirement Planning
► Ageing Population
3

4. Pensions
30
65+ cohort as % of total pop.
Population is getting older 26%
25 - Significant increase in 65+ cohort from 2016 on -
20
15 11%
10
5
0
1926
1936
1946
1951
1961
1966
1971
1976
1981
1986
1991
1996
2006
2011
2016
2021
2026
2031
2036
2041
And as this graph shows 26% of the population will be over 65 by 2041
4

5. Savings & Investments
Lump Sums
Regular Savings
5

6. The Lost Decade for Equities
Past Performance is not a reliable indicator of
future performance
Annualised 10 Year Return in Local Currency • “Returns in the 10 years after a
to 30th Sept 2010
1.0%
‘lost decade’, defined as any 10-
0.0% year period in which US equity
-1.0%
returns were below the rate of
inflation, average out at a
-2.0%
healthy 11 per cent per annum
-3.0% in real terms,” according to
-4.0%
Fidelity”
-5.0%
World Europe USA Japan
Source: Factset
6

7. Savings & Investments
Lump Sums
Regular Savings
7

8. Life Assurance
€1,000,000,000 in Claims* paidin last 3 years
€1,000,000,000 in
Claims *
…paid in last 5 years
*Irish Life Stats 2006 - 2010
8

9. 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
9

10. Technology
From ratebook to
iphone!
10

11. Distribution
Increased Regulation
Brokers have largest Share
2009 2010
Fee vs. Commission (H1)
Brokers 67% 63%
Banks 17% 20%
Direct 16% 17%
11

12. Characteristics for Success
Integrity Pride
Confidence Leadership
Communication Love for the
Customer
Energy Planning Resilience
12