"Our role as advisers is crucial in making sure they’re supported and feel prepared for any challenges that might arise."
- Marina Herbert, Operations Director at Herbert & Webster Ltd
As part of the lang cat’s annual ‘State of the Advice Nation’ (SOTAN) Report, it has been revealed that 84% of firms offer protection in-house in the UK. Protection advice is also the most commonly requested service.
This was followed by targeted advice according to occupation, which is offered by just over half of the firms. 44% aid with long-term care planning, while just 17% support clients with DB transfers. Only 21% offer equity release services.
The prominence of protection advice aligns with recent data released by The Exeter, showing over half (51%) of advisers predict a marked increase in demand for Income Protection (IP) and Life Insurance-related products over the next twelve months.
92% of those surveyed (250) said they are confident they can meet this increase in demand.
Likewise, recent data released by the Association of British Insurers (ABI) has shown record numbers of IP plans sold in 2023 (247k), nearly all of which were advised sales. This highlights the vital role advisers play in bolstering consumers' financial resilience. Meanwhile, 75,700 standalone Critical Illness Cover (CIC) policies were sold that year, which is almost four times higher than a decade ago.
The third most common service was support with long-term care, which is offered in-house by 44% of firms, with a further 18% having a trusted referral process in place. A recent report published by Age UK found that there are currently at least 2mn older individuals in England with unmet social care needs.
Last year, the Government ceased plans that would’ve helped reduce the cost of care for older individuals. It has since launched an independent commission to look at fixing the system, due to conclude in 2028.
Steven Nelson, Insights Director at the lang cat, said these findings show “how diverse advice businesses are in terms of the services provided. Also, how they continue to evolve as they look to support clients with major issues they face. The numbers suggest more people are feeling financially vulnerable to cost-of-living pressures and are seeking more protection.”
“We’re pleased to see that protection is widely offered as part of the financial planning proposition. This is an encouraging trend for the industry. We believe that no financial planning and investment strategy stacks up if it’s not protected,” added Marina Herbert, Operations Director at Herbert & Webster Ltd.
She said: “Our clients have wonderful aspirations, and it’s essential to get the right protection in place so these goals remain within reach. We’re also seeing more clients looking to us for help with planning for long-term care.
“They want reassurance and to know that things are taken care of when they’re likely to be at their most vulnerable. Our role as advisers is crucial in making sure they’re supported and feel prepared for any challenges that might arise,” Marina concluded.
