The report released by AIA New Zealand and conducted by researchers Dr Adam Fraser and Dr John Molineux for the company shows that one in five advisers are seeking or have sought medical care for stress, with 15% reporting that their doctor has advised them that they are in a high-risk category for heart disease or stroke.
Sam Tremethick, AIA NZ Chief Partnership Insurance Officer, says the research was done to better understand how operating in a global pandemic, increasing industry regulation, and changing client needs are impacting the adviser industry.
“Financial advisers largely fly under the radar as a sector. They work under difficult circumstances and have challenging roles. So we felt it was important that we better understand how the industry is faring on the whole and identify ways they can be better supported.”
Results found that a quarter of advisers are considering leaving their job due to stress, and a quarter also intend to take stress leave. Furthermore, two in five advisers believe this stress is impacting their ability to get adequate sleep.
More than 60% of advisers who responded to questions about stress said the newly introduced government regulation was highly to very highly stressful, 42% said work overload was highly to very highly stressful, and 37% said meeting future education standards was highly to very highly stressful.
On the flip side 67% of advisers surveyed said they are doing a good job in managing work-life balance, and 44% of advisers said that they feel their ‘personal time is their own’.
Similar research conducted in 2020 across the financial adviser sector in Australia provides a clear caution of the risks Kiwi advisers face if current industry issues aren’t addressed. Across the ditch 73% of respondents had high levels of burnout from stress and 67% had experienced some level of depression.
“Many of the NZ advisers said the increase in compliance and regulation had already had a negative impact on them. They were very concerned that New Zealand may follow the lead of Australia, where regulatory demands have led to advisers becoming disengaged and more likely to leave the industry,” Tremethick continued.
“However, we appreciate the regulatory environment is very different over the Tasman, and maintain that overall the changes in NZ were a needed step to improve the professionalism of our industry, and support good customer outcomes.”
AIA NZ acting chief executive, Sharron Botica, agreed. “Having reviewed the research findings, we believe our role at AIA NZ is to be a catalyst for change by raising the conversation around adviser wellbeing with industry bodies and leaders, and to challenge what we can do to collectively make improvements for the future.”
AIA says it has committed to looking at their own practices for ways to improve and offer additional support to advisers.
