"Advisers should remain confident in their ability to overcome these obstacles, having successfully navigated economic pressures, market uncertainties, and regulatory reviews in the past."
- Karen Woodley, Head of Healthcare Distribution at The Exeter
Of those surveyed (250), 32% of advisers ranked rising business costs as their biggest challenge over the next twelve to twenty-four months, followed by mortgage market instability (27%) and continued pressure on consumer finances (26%).
21% of advisers believe customer retention will be a key challenge over the next twelve to twenty-four months. This highlights the need for advisers to continue to focus on building strong, long-term relationships so that customers fully value the importance of ongoing financial advice.
Notably, 19% of advisers highlighted adherence to the Financial Conduct Authority’s (FCA) Consumer Duty and potential new regulations as significant concerns.
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The Exeter found male advisers were more likely to highlight financial and structural pressures, while female advisers expressed concerns over healthcare investment and its potential impact on demand for insurance products.
Rising business costs were cited by a third (33%) of male advisers versus 29% of female advisers as a key concern, whilst continued pressure on consumer finances was a great concern for male advisers (29%) compared to female advisers (20%).
26% of male advisers raised changes to commission payment structures as a concern versus just 18% of female advisers.
“These findings highlight the numerous challenges advisers will face over the next two years. However, advisers should remain confident in their ability to overcome these obstacles, having successfully navigated economic pressures, market uncertainties, and regulatory reviews in the past,” explained Karen Woodley, Head of Healthcare Distribution at The Exeter.
She said: “From an insurer’s perspective, we’re dedicated to supporting advisers to ensure we deliver the best outcomes for both new and existing customers. While it’s essential to help more people benefit from insurance, it’s equally important to focus on those who already have cover.
“With one in five advisers identifying customer retention as a key challenge and ongoing financial pressures being placed on consumers, it’s crucial for advisers and insurers to work together to keep existing customers engaged. This ensures their cover continues to meet their needs and they fully understand the benefits of their insurance,” Karen concluded.
