Advisers remain resilient in the face of Covid-19

16 June 2020

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Our recent research shows advisers are optimistic about the resiliency of their business in light of Covid-19.

Feedback from 96 advisers shows more than two thirds (67%) say they expect to see business return to usual within three months of the ‘end of Covid-19’. Nearly four in ten (37%) expect this to take only one month, and only 10% expect this to take more than six months.

While new business demand has dipped advisers say they are spending more time speaking to their current clients. Six in ten advisers have seen inbound contact from clients increase by 25% with demand for reassurance on investments, information on furlough, self-employment, and payment holidays.

Selling and merging

These high levels of adviser confidence were also evident in our research carried out with NMG before the crisis.

Responses from 426 advisers showed that while nearly half (48%) had been approached to either sell or merge their business in the last two years only 17% were actively considering it with the majority of smaller firms planning to stay independent. Only one in ten advisers believed consolidation was the best option for clients and around one-third of advisers were investing in people to help grow their business and improve efficiency.

Commenting on the research, Tom Dunbar, our Intermediary distribution director, said:

“Seeing advisers keeping calm and staying resilient in the face of Covid-19 is good news for the industry. While many will face challenges in the months ahead, it’s clear that the marketplace for impartial advice remains buoyant with advisers looking for opportunities such as within the protection market."

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.