A third (32%) of advisers highlighted rising business costs as their biggest challenge for 2025, according to research by The Exeter.
The UK health and life insurer shared findings from a nationwide survey detailing advisers’ key concerns for the coming year.
The research found that 27% of advisers ranked mortgage market instability as a significant concern, while 26% ranked ongoing pressure on consumer finances as another concern.
Additionally, client retention was identified by 21% of advisers as a notable challenge.
Regulation was also a significant issue, with 19% of advisers pointing to adherence to the Consumer Duty and potential new regulations from the regulator or Government as challenges.
Male advisers showed greater concern for financial and structural pressures, while female advisers expressed worries about healthcare investment and its implications for insurance demand.
Specifically, 33% of male advisers cited the increased cost of doing business compared to 29% of female advisers.
Additionally, continued pressure on consumer finances was a concern for 29% of male advisers, while only 20% of female advisers felt similarly.
Changes to commission payment structures were raised by 26% of male advisers compared to 18% of female advisers.
Moreover, Government investment in the NHS was deemed a larger concern by 24% of female advisers compared to 20% of male advisers.
Karen Woodley, head of healthcare distribution at The Exeter, said: “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.
“From an insurer’s perspective, we are dedicated to supporting advisers to ensure we deliver the best outcomes for both new and existing customers.
Woodley added: “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 client 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.”
