Consumers are viewing financial advice more favourably as a result of the COVID-19 pandemic, with around 40 per cent of unadvised people saying they are now more likely to see an adviser than a year ago.
This intention was uncovered as part of life insurer MetLife’s third annual “Adviser-Client Relationship Report”, which found 42 per cent of people without advice are now more likely to see an adviser.
MetLife stated data drawn from its COVID-19 Consumer Insights research from mid-2020 pointed to why the appetite for advice had grown and that by May last year, half of the consumers surveyed said their financial position had been impacted by the pandemic.
The latest report found 80 per cent of those who have an adviser feel better about their financial position despite the impact of the pandemic and 82 per cent were confident they had the right level of life insurance.
Where advisers were inactive with clients was also reflected in the report, which found 43 per cent of advised clients said they had not undergone a review in the past 12 months and, as a result, half of those clients were thinking of leaving their financial adviser.
“This highlights the importance of regular client reviews and communication as key factors to enabling advisers to build trust and advocacy with their clients,” MetLife stated.
“Clients were three times more likely to recommend their adviser if they received a review during the pandemic.”
MetLife chief retail insurance officer Meray El-Khoury said the pandemic had shown the importance of affordable advice for those who need it most.
“This year the experience ratings of advised clients was the highest we have seen in the three years this research has been running, with approximately 15 per cent increase in advisers receiving an excellent rating following a review,” El-Khoury said.
“Now is the time for advisers to be investing in relationship building and clear, transparent communication to help their clients make sound financial decisions for their future.
“Reviews have always been critical in helping advisers drive loyalty and recommendations, but their importance reached new levels during the pandemic and advisers that invest in them proactively will continue to be rewarded.
“Importantly we have seen advisers pivot their review approach to the conditions with more online and phone reviews. This has been a significant cultural shift for the industry, but the research shows that where clients have received these consultations proactively, over the phone or online, they have been happy with the experience.”
The research behind the report was conducted by independent research firm Little Triggers between November and December 2020 and was based on a sample of 1241 respondents, including 727 consumers with life insurance purchased through a financial adviser; 202 small to medium-sized enterprises that have life insurance purchased through a financial adviser and 312 respondents who said they were very likely to see a financial adviser about life insurance in the next two years.
