"This research clearly shows that in the current market, consumers value the expertise and reassurance they can get from financial advice, instead of opting for DIY approaches that many providers push."
- Louise Pengelly, Paymentshield proposition director
Commissioned by General Insurance (GI) platform provider Paymentshield, the survey showed that across the 2139 UK adult participants, those aged 25-34, typically first-time buyers, are most likely to seek financial advice this year. Of this cohort, 45% said that finances are currently their biggest worry.
Despite financial concerns, the survey also showed that there is an overwhelming confidence among consumers in the value of financial advice. Over 45% of those who are likely to seek professional financial advice this year said the main reason was due to thoughts of taking a ‘DIY approach’, such as exploring self-serve platforms and price comparison sites.
Last year, only 24% of respondents said that they were likely to seek professional financial advice in hopes of taking a ‘DIY approach.’ Paymentshield believes that this demonstrates a “huge year-on-year growth in the perceived value of advice,” which is especially important given that over 25% of consumers don’t feel confident about their ability to comprehend ‘value’ or what their policy covered if they purchased one from a price comparison site.
Considering the Cost-of-Living crisis, Paymentshield highlighted that over half of people (51%) plan to scrutinise financial products more this year in hopes of saving money. The GI platform provider notes that this demonstrates there is a “clear opportunity for advisors to help their customers to assess value.”
However, only 14% of homeowners think that advisers have the main responsibility to review home insurance when they’re remortgaging. Subsequently, where an adviser did not offer to conduct a review at remortgage, almost two thirds of people (64%) did it themselves.
Commenting on these findings, Louise Pengelly, Paymentshield proposition director, has said:
“This research clearly shows that in the current market, consumers value the expertise and reassurance they can get from financial advice, instead of opting for DIY approaches that many providers push.
“With a 25% rise in the cost of building materials alone, many consumers cannot afford to make ill-informed choices when it comes to home insurance. We expect advisers will see a rise in demand for their services this year, and there’s ample opportunity for them to provide additional support by discussing home insurance with their clients.
“There’s a lot of added value they could offer to remortgage customers in particular, many of whom may not expect but would evidently appreciate an offer to review their home insurance.”