"Half a year on from the initial shock, 76% of advisers report clients are still showing increased willingness to discuss protection."
Of the 316 advisers surveyed, 76% of advisers say clients are more willing to discuss protection than before the pandemic. That’s consistent with the 75% who said the same earlier this summer.
Inbound protection enquiries are also up compared to earlier in the year. 56% of advisers said they’ve seen an increase in protection enquiries from new clients, up from 39% in the summer. Existing clients, too, are showing increased appetite to discuss their protection needs. 49% of advisers are seeing an increase in inbound queries from their existing customer base, up from 40% in the summer. And 53% of advisers report an increase in protection sales.
Advisers are shifting their behaviour too. Guardian’s research shows advisers are discussing protection more frequently. The latest findings show 85% of advisers who previously ‘didn’t normally talk about protection’ are now doing so, up from 83% in the summer. 82% of advisers say that Covid-19 now features in all of their client protection discussions.
In terms of the impact Covid-19’s had on overall adviser revenue, there’s a split amongst adviser firms. Some report that their businesses are holding up, while some seeing a downturn. However, there are encouraging signs the impact has been less devastating than initially expected. Over half of adviser firms surveyed (57%) said overall revenue had not fallen as a result of Covid-19. 38% of advisers said they had seen an overall fall in income. However, this figure compares favourably to the 56% who predicted a loss in income earlier in the year.
Other signs that the impact’s been less severe than feared are the number of advisers saying they expect to resort to new ways to make income. In summer 54% predicted they’d need to, but in the latest research, just 29% said they would. Likewise, earlier in the year, 76% predicted that they’d need to focus on existing customers, yet in October, 55% said that this had happened. This suggests that new clients have also been seeking financial advice.
Jacqui Gillies, marketing and proposition director at Guardian, said: “Half a year on from the initial shock, 76% of advisers report clients are still showing increased willingness to discuss protection. This is the single most important change we’ve seen in client behaviour for years and it’s persisting. The experience of 2020 means protection is what people want to talk about.
“Almost everyone has a protection need. Covid-19 has put this front of mind for clients and many have been making proactive inbound calls seeking financial advice. Advisers have such an important role to play in helping people identify their needs and find the right product and we have a role to play in supporting them.”
