Director of Distribution and Marketing
An overwhelming majority of UK workers will always seek financial advice before taking out any form of insurance, according to research by The Exeter.
The 2023 Health & Financial Fears Report revealed that almost four out of five UK workers – the equivalent of over 26 million people – prefer to consult an adviser before buying an insurance product, including life cover, income protection, private health insurance, or a cash plan.
The report’s findings reflect the patience and carefulness of the UK working population. According to the research, more than a quarter (26%) are willing to wait to purchase a policy if it means receiving independent financial advice first. However, almost two-thirds (65%) stated that they would not accept overly lengthy delays in the advice process.
The desire of employees in the UK for independent financial advice is encouraging and plays a key role in building consumer trust in insurance. There is however more to be done when it comes to building consumer trust around whether a policy claim will be paid by an insurer.
Whilst more than half of respondents (58%) – stated they were confident that an insurance company would pay a claim related to income protection, health insurance or a life cover product, just 15% said they were ‘very confident’ this would happen. This highlights a continuing challenge for the industry when it comes to educating consumers of the real-life value that the products offer in the event of illness or injury.
Steve Bryan, Director of Distribution & Marketing at The Exeter, added:
"The role of the financial adviser will continue to be pivotal for our industry, especially in the evolving financial and regulatory environment in which we operate. The fact that eighty percent of consumers would delay or hold off on an insurance purchase until they had sought professional advice is a testament to the level of service provided by advisers. It also highlights a high level of consumer trust in the advice process, which is incredibly positive.
However, our research also highlights that there is more our industry can do to build trust with consumers around claim payments. The level of financial and wider support provided by the industry each year should be applauded, but if we are not communicating these messages to consumers in a way that resonates with them, then we are not doing ourselves justice.
It’s therefore important that we work together to further improve our messaging around claims payments as an industry so that we can increase consumer trust in the products we sell.”
Notes to Editors
1. ONS, Number of people in employment (aged 16 and over, seasonally adjusted), August 2023 www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes
Data in this report was gathered as part of The Exeter's Health and Financial Fears of UK Workers 2023 research, which surveyed 2,000 employed adults aged over 18 in the UK between the 1st and 5th June 2023. For some charts, respondents who replied, ‘Don’t know', 'None of the above' or ‘Prefer not to say’ have been removed to aid clarity, however these percentages are still factored into the final figures.
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About The Exeter
The Exeter is a leading protection and healthcare insurer who have been supporting UK families in the event of ill health or injury since 1888.
Formerly known as the Exeter Friendly Society and Pioneer Friendly Society, Exeter is a mutual friendly society. This means it is owned by members and run for their benefit, rather than shareholders.
The Exeter is a trading name of Exeter Friendly Society Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register number 205309) and is incorporated under the Friendly Societies Act 1992 Register No. 91F with its registered office at Lakeside House, Emperor Way, Exeter, England EX1 3FD.