Advisers reveal biggest challenges over next 24 months

While advisers expressed confidence in navigating the challenges of 2025, rising costs and market pressures continue to dominate, according to a new nationwide survey of financial advisers by The Exeter.

The survey found that a third (32%) of advisers ranked 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%).

A fifth (21%) of advisers identified client retention as a key challenge over the next 12–24 months. 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.

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

Karen Woodley, head of healthcare distribution at The Exeter, commented: "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."