The majority of advisers expect business to pick up over the next six months despite the current uncertainty in the financial markets, according to Legal & General.
The results of the firm’s first Adviser Confidence Index suggest 60% of IFAs are optimistic about business inflows, mainly through re-mortgage and protection applications.
The study also suggests one in three advisers expect mortgage applications to represent no more than 20% of their business over the next three months, with 70% predicting the base rate will stay the same next month.
Stephen Smith, director of housing at L&G, says: “It is somewhat surprising that almost two in three advisers are optimistic about business inflows and that a further 24% of them expect business levels to remain constant over the next three months.
“This can be partly attributed to the new prospects that advisers see on the horizon, namely the re-mortgage market and the protection market.”
A total of 58% of advisers surveyed in the study are also predicting a rise in protection sales over the next quarter, and only 13% can see a fall back.
L&G says adviser focus is switching increasingly to protection as mortgage applications are harder to come by.
It says those advisers that regularly write protection business will have a head start and they will be looking to expand, especially into relatively untapped areas such as business protection.
Smith adds: “Protection is a good prospect because consumers should be looking to protect both their life and their lifestyle with the appropriate cover as the issue of debt and expenditure become an increasing preoccupation for many households.”
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