There has been a huge surge in demand for expert financial advice as a result of the Covid pandemic, research suggests, with consumers far more interested in expertise protection than wealth management or retirement planning.
Nearly a third (29%) of advisers polled by Zurich reported an increased demand for their services, with two thirds (67%) witnessing a surge in queries about for mortgage advice followed by income protection (39%) and critical illness cover (36%).
In contrast, demand for services including retirement planning and wealth management advice have both fallen for 38% and 34% advisers respectively.
A spokesperson for Zurich said the findings reflect figures published by the Bank of England which show UK mortgage levels as being at their highest in 13 years – largely due to the stamp duty holiday which is currently due to end in March.
Individuals and families have also been reassessing their housing needs after spending much of 2020 at home, the spokesperson said.
The research also suggests that as well as being stimulated by mortgage activity, it seems demand for protection is being brought into focus with people wanting to put financial safety nets in place for themselves and their families amidst health concerns and economic uncertainty.
When asked about their relationships with customers, nearly a third (32%) of advisers agreed that these had strengthened through the pandemic though more than half (52%) disagreed with this statement.
The Zurich spokesperson said this may suggest that “general disruption” and widespread “changes to policies” is impacting on service levels alongside the inability to meet clients face-to-face. However, relationships with providers were seen to have improved for most (75%) advisers.
Louise Colley (pictured), Zurich’s UK director of retail protection added: “We’ve been engaging with advisers to gather real insight about the challenges they’re facing on the front line, so that we can better support them. What’s clear is that they are dealing with a whole raft of issues – not least, the pressure from coping with increased demand on their businesses. The upside to this is that protection seems to be very much on people’s radar.
“Our role in supporting advisers and making their lives easier is more important than ever. This includes a commitment to providing the best service possible and making them and customers aware of all of the additional support they can access through their protection product.”
Paul Shearman, mortgage and protection director at financial adviser network Openwork, said the past 12 months have proved “challenging” for advisers as our businesses have been impacted directly by disruption in the economy, changes to regulation as well as to the products and services.
He said: “At the same time, we’re working to reassure customers, with many anxious about their finances as they face job losses or cuts to household income. Concerns about their own health and family members are also driving an increased awareness and need for protection – advisers need to rise to the challenge and ensure they keeping close to their clients, educating them on the protection they may already have and putting into place new cover as needed.”