Nearly a third of consumers and more than half of all businesses are considering changing or dropping their financial adviser because they think they don’t need insurance or think it’s too expensive, MetLife says.

The new Adviser-Client Relationship Report reveals that despite improved understanding of life insurance among consumers, their shaky relationship with advisers is imperilling the retention of life cover.

About 81% of consumers know the amount of cover they hold, compared to 74% last year, and 50% know the difference between level and stepped premiums, compared to 43% last year.

Yet more than 40% think life insurance bought through an adviser is more expensive, and only a third believe the product is better than buying direct, or life-in-super.

Among small business owners, 51% think life insurance is more expensive through an adviser, while 43% think other insurance is more expensive with an adviser.

Consumers who prefer to pay an upfront fee for insurance advice instead of commissions were willing to pay an average of $1700 – far lower than the average cost to produce comprehensive insurance advice.

About 35% of respondents are willing to pay only between 1-5% higher premiums to offset not paying an upfront fee. The Federal Government is trying to pass a law banning adviser commissions.

A quarter of consumers polled want to drop or change their adviser because commissions or fees are too high, while 23% say they can’t afford it. Another 23% cite poor communication as a factor.

Nearly eight in 10 business owners would pay an upfront fee if it meant lower premiums, yet more than a third can’t remember what the size of their adviser’s commission was, the report says.

Just under half of those polled (46%) worry that insurers won’t pay out in the event of a claim and need to be reassured by advisers, the report says.

MetLife Head of Retail Sales Matt Lippiatt says the recent spotlight on financial services is making clients take a closer look at their financial products and could explain why Australians know more about their insurance cover.

“But there is still a lot of confusion about life insurance and the true benefits of seeking out financial advice,” he says.

“There is no such thing as a ‘set-and-forget' client anymore. Client engagement should be the No.1 priority on every adviser’s business plan for 2020.”

Click here to read the full report.