Over half of workplace protection advisers says cost pressures on SMEs are their top concern for the forthcoming year.
Research from Canada Life says this concern, cited by 55 per cent of advisers, was closely followed by economic uncertainty (53 per cent), with almost half of advisers (45 pr cent) saying they believe this will reduce the amount of business they write over the next 12 months. A further two-fifths cited concerns about how costs will impact their fee revenues.
However advisers recognised there were still opportunities, despite the gloomy economic conditions. More than three out of four (76 per cent) said that the increased focus on health and wellbeing was a significant opportunity. This was followed by the increase in flexibility of benefits (43 per cent), and the adoption of new technology (38 per cent).
The survey also reveals the key benefits advisers are looking for this year. Service ranked the highest, with three quarters of advisers selecting this option, with price (74 per cent) and added value services (62 per cent) coming in at second and third.
Canada Life protection sales director Dan Crook says: “Whilst I understand advisers are suggesting that SMEs will be under greater cost pressures, which presents a risk to our industry, I also feel that employers’ and employees’ awareness of our solutions have been heightened as a result of Covid. So, it’s reassuring to see that workplace protection advisers also recognise an opportunity to attract SMEs to our market.
“It also makes sense that advisers see a significant opportunity in the health and wellbeing space. The pandemic has put this at the forefront of the global agenda, and the protection industry has readily met the changing needs of the UK’s workforce and their families during the toughest of times. This includes the launch of tech-driven, flexible solutions, such as our support services offered through WeCare and myStrength, our new mental wellbeing app.
“Looking ahead, we, as an industry, must work to continue developing our propositions to ensure advisers have the right tools in place to help employers and their employees get the support they need, when they need it.”