A nationwide survey of financial advisers, conducted by The Exeter, has discovered their main priorities and concerns for the year ahead.

Although advisers voiced their confidence in being able to deal with the challenges of 2025, rising costs and market pressures continue to dominate their concerns.

According to the research, 32% of advisers stated that the increased cost of doing business as their biggest challenge over the next 12–24 months. Other key concerns include mortgage market instability (27%) and the continued pressure on consumer finances (26%).

21% of advisers identified client retention as a key challenge over the next 12–24 months. The health and life insurer said this finding from its survey highlights the need for advisers to continue to focus on building strong, long-term relationships so that clients fully value the importance of ongoing financial advice.

Regulation remains another challenge for advisers, with 19% highlighting adherence to the Consumer Duty and potential new regulations from the FCA or government as significant concerns. This comes as the FCA conducts its market study into pure protection insurance, focusing on competition in the market.

GENDERED DIFFERENCES

Male and female advisers reported differing levels of concern across several key challenges. Male advisers were more likely to highlight financial and structural pressures, while female advisers expressed concerns over healthcare investment and its potential impact on demand for insurance products:

• The increased cost of doing business was cited by a third (33%) of male advisers compared to female advisers (29%) as a key concern
• Continued pressure on consumer finances was a greater concern for male advisers (29%) than for female advisers (20%)
• Changes to commission payment structures were raised by a quarter (26%) of male advisers, compared to under one in five (18%) of female advisers
• Meanwhile, government investment in the NHS was more of a concern for female advisers (24%) than their male counterparts (20%)

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.

“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.”