New research by the Exeter has found that a clear majority of UK workers will always seek financial advice before taking out any form of insurance.
Its 2023 Health & Financial Fears Report revealed that almost four out of five UK workers – the equivalent of over 26 million people – prefer to consult an adviser before buying an insurance product, including life cover, income protection, private health insurance, or a cash plan.
The Exeter said its report’s findings reflect the patience and carefulness of the UK working population. According to the research, 26% are willing to wait to purchase a policy if it means receiving independent financial advice first. However, 65% said that they would not accept overly lengthy delays in the advice process.
The desire of employees in the UK for independent financial advice is encouraging and plays a key role in building consumer trust in insurance, the Exeter said, although it added that there is more to be done when it comes to building consumer trust around whether a policy claim will be paid by an insurer.
While 58% of respondents stated they were confident that an insurance company would pay a claim related to income protection, health insurance or a life cover product, just 15% said they were ‘very confident’ this would happen. This highlights a continuing challenge for the industry when it comes to educating consumers of the real-life value that the products offer in the event of illness or injury, the Exeter noted.
Steve Bryan (pictured), director of distribution & marketing at the Exeter, said: “The role of the financial adviser will continue to be pivotal for our industry, especially in the evolving financial and regulatory environment in which we operate. The fact that eighty percent of consumers would delay or hold off on an insurance purchase until they had sought professional advice is a testament to the level of service provided by advisers. It also highlights a high level of consumer trust in the advice process, which is incredibly positive.
“However, our research also reveals that there is more our industry can do to build trust with consumers around claim payments. The level of financial and wider support provided by the industry each year should be applauded, but if we are not communicating these messages to consumers in a way that resonates with them, then we are not doing ourselves justice.
“It’s therefore important that we work together to further improve our messaging around claims payments as an industry so that we can increase consumer trust in the products we sell.”