The pandemic has increased demand for advice among consumers according to a new report from insurance provider Metlife Australia, which says 42 per cent of non-advised people are now more likely to see a financial adviser than they were before Covid-19.
According to the MetLife Adviser-Client Relationship Report half of consumers said their financial position had been affected by the pandemic, which caused broad concern about financial security and insurance needs.
“More than 40 per cent of those considering seeing a financial adviser say they are more likely to see one now than before COVID-19,” the report states. “The experience of the pandemic has also made consumers generally concerned about whether they have the right level of insurance cover, with 25 per cent saying it made them feel like they should increase their cover and an approximate 10 per cent drop in the number of consumers feeling like they have adequate cover.”
Of those that are already under advice, 80 per cent said they felt better about their relationship as a result of having a financial adviser.
“The pandemic has shown the importance of affordable, accessible financial advice for those who need it most,” commented MetLife chief retail insurance officer Meray El-Khoury. “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.”
Surprisingly, 43 per cent of advice clients said they hadn’t received an advice review in the preceeding 12 months – something El-Khoury believes advisers need to address.
“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,” she sid. “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.”