New research has revealed that one-in-three consumers are thinking of changing their financial adviser or stopping seeing a financial adviser altogether over the next 12 months, with the major reasons being cost and lack of communication.
The research, commissioned by major insurer MetLife revealed that 15% of respondents to a survey were thinking of no longer using an adviser while 15% were thinking of changing to another adviser, with 25% citing high fees, while 23% said they did not need advice any more, 23% cited poor communication and lack of contact while 21% cited poor value for money.
The survey analysis said that advisers needed to recognise the findings as a serious call to nurture their relationships and show their expertise to clients through regular contact and reviews.
“There are two ways that advisers can easily improve client satisfaction. The first is around building a relationship that is more akin to a partnership, the second is by demonstrating their expertise and providing value on a regular basis,” it said.
“One act that can have a big impact on their clients and be an opportunity for an adviser to demonstrate their care and expertise is a simple annual review,” the survey analysis said.
“Of the 60% of consumers with life insurance who undertook a review with their adviser in the last 12 months, 63% rated their experience as ‘very good’ or ‘excellent’ and 49% modified their insurance cover in line with their stage of life,” it said. “For example, those aged under 35 increased their cover, while those who might be transitioning to retirement reduced theirs. The added value of this engagement with clients is clear. Consumers who have had a review are more likely to be loyal and recommend their adviser to a third party.”