Risk advisers will enter 2014 with more energy and more optimism about the future of their businesses than they have had for the past two years, according to the latest research from Zurich.
Zurich’s Risk Adviser Sentiment Index has revealed that 94.5% of advisers are feeling optimistic about the long-term viability of their practice. Advisers surveyed by Beaton Consulting for the study were asked to rate their sentiment across five key areas, using a seven-point scale from ‘extremely negative to extremely positive’. Sentiment towards the ongoing viability of advisers’ businesses increased by 6% in 2013, up from a score of 5.9 in 2012.
Advisers were also increasingly positive about their current sales volume (sentiment up 4% on 2012) and the ongoing consumer demand for advised life insurance (up 3% year on year).
These scores were combined to calculate an overall sentiment score of 5.04, the highest index result of the past two years, indicating advisers are ‘moderately positive’ about their futures.
However, the current regulatory environment still poses concerns, with only 26.5% saying they felt positive about this aspect of their business, and nearly half (49.5%) admitting to feeling negatively about continued change.
2013 will be seen as a year of fatigue
Commenting on the research, Philip Kewin, General Manager Retail for Zurich’s Life and Investments business, said: “For many in the industry 2013 will be seen as a year of fatigue; FoFA fatigue, election fatigue, interest rate fatigue.
“Whilst the bedding down of FoFA and other regulatory issues is still causing angst for some, I think there is a strong sense that the new government will bring with it a degree of stability and certainty for our industry, which is reflected in more than 90% of advisers feeling positive about the viability of their business over the longer term.”
