The Intermediary – September 2025 - Flipbook - Page 83
P RO T E C T I O N
Opinion
How are advisers
navigating the
market?
E
ach year at
Paymentshield we
carry out our Adviser
Survey with financial
advisers to explore their
perspectives, working
methods, and obstacles particularly
concerning general insurance (GI).
This research delivers valuable
understanding of how advisers
approach GI and the challenges they
face, and provides practical market
intelligence for an industry that’s
always looking to improve.
This year’s Adviser Survey drew
485 responses, and as always, there’s a
lot to unpack. While five consecutive
interest rate reductions have
encouraged greater mortgage market
activity – welcome news for the
industry – advisers are simultaneously
navigating emerging opportunities
and challenges.
State of play
One of the most striking findings from
this year’s survey is the measured
confidence that advisers are displaying
about the economic outlook. Nearly
half (47%) of respondents report
feeling more confident about the state
of the economy compared to the same
period last year.
Despite this, a significant 17%
of advisers disagree with positive
economic sentiment, while more
than a third (36%) remain neutral,
suggesting swathes of the industry
remain incredibly cautious aer the
last few years of market headwinds.
Perhaps more revealing than
economic sentiment is that
our advisers are continuing to
diversify, with GI emerging as a
key growth area. More than eight
in 10 (83%) advisers intend to grow
their GI business over the next 12
months – signalling the industry’s
LOUISE PENGELLY
is director of proposition
at Paymentshield
recognition of traditionally ‘ancillary’
products as increasingly important
revenue streams.
Client relationships
We also found that a huge 93%
of advisers view having general
insurance discussions with their
clients as best practice – a figure which
has remained firm in the 12 months
since our 2024 Adviser Survey.
However, execution remains
inconsistent. While nearly half of
advisers (45%) revisit existing clients’
GI needs annually, more than a
quarter (28%) only do so when clients
specifically ask. This means there’s
significant potential for advisers
looking to add value by proactively
approaching clients ahead of their GI
renewal dates.
Interestingly, the survey challenges
assumptions about client preferences
in an increasingly digital world.
Almost 40% of advisers report rising
client demand for GI advice over
the past year, with only 12% saying
their clients don’t want advice at all.
This should be balanced with the
growing competition that advisers
face, however.
Almost half of advisers report
that they are worried about the rise
of finfluencers as an alternative
source of advice. The vast consumer
adoption of short-form video apps like
TikTok means the potential impact of
unregulated advice is huge. Indeed,
a recent report from social media
management company Sprout Social
found it has 24.8 million users aged 18
and above in the UK, as of June 2025.
With just 6% of advisers using
TikTok to communicate with clients,
this highlights why it’s crucial for
advisers to maximise the direct and
personal relationship they already
have with clients who come to them
for mortgage advice. By proactively
offering guidance on connected areas
like GI, advisers can strengthen
these existing relationships and
provide comprehensive support
that unregulated sources simply
cannot match.
The remortgage market presents an
interesting case study in opportunities
that advisers could be missing out on.
Despite representing 30% of advisers’
client base – the second largest group
aer first-time buyers – many advisers
admit to regularly overlooking this
cohort. Especially against a fluctuating
economic backdrop, it’s crucial
that advisers continue to take the
opportunities that come their way.
Looking ahead
The 2025 Adviser Survey paints a
picture of an industry in transition.
For advisers that have made it through
the challenges of the past five years,
it’s clear that their focus remains
on sustained growth, balanced by
tempered expectations.
But it’s important that we’re seeing
renewed market activity, as well as
growing client demand for advice. At
the time of writing, interest rates are
currently at 4% – their lowest since
2023, suggesting a gradual return to
more favourable lending conditions
that will continue to keep advisers
busy into Q4 and beyond.
We’ll continue to take these
temperature checks of our advisory
network to beer understand the
challenges that both individuals and
the collective are facing.
If you’re keen to take part in 2026’s
Adviser Survey, keep an eye on our
network communications – we’d love
to have you take part. ●
September 2025 | The Intermediary
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