An overwhelming majority of workers speak to an adviser before taking out any form of insurance, according to research by The Exeter.
The 2023 Health & Financial Fears Report revealed that almost four out of five workers – the equivalent of more than 26 million people – preferred to consult an adviser before buying an insurance product, including life cover, income protection, private health insurance, or a cash plan.
More than a quarter (26%) were willing to wait to purchase a policy if it meant receiving independent financial advice first.
However, 65% would not accept overly lengthy delays in the advice process.
While almost three-fifths of respondents (58%) were confident that an insurance firm would pay a claim related to income protection, health insurance or a life cover product, just 15% were ‘very confident’.
Steve Bryan, director of distribution and 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 80% 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.”
He added: “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.”
