Almost a third (32%) of advisers have pointed towards the increased cost of doing business as their biggest challenge over the next one to two years, The Exeter has revealed.

The health and life insurer found in its latest survey of 250 UK financial advisers that other key concerns include mortgage market instability (27%) and the continued pressure on consumer finance (26%).

The survey also revealed that 21% of advisers identified client retention as a key challenge over the next 12 to 24 months, which The Exeter said "highlights the need for advisers who continue to focus on building strong, long-term relationships".

Regulation was another potential challenge for advisers, with 19% stating that adherence to Consumer Duty and potential new regulations from the Financial Conduct Authority or the Government were "significant concerns".

Head of healthcare distribution at The Exeter, Karen Woodley, said: "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."

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