"Over the past five years, we’ve gathered important insights, and we’re excited to share actionable ideas to help firms and advisers overcome the barriers identified in our study."
- Robert Sinclair, CEO of AMI
Ahead of its fifth ‘Protection Viewpoint’ Report launch, the Association of Mortgage Intermediaries (AMI) has revealed that 41% of advisers believe the Consumer Duty has improved the quality of consumer outcomes. Of those surveyed (3,000 consumers and 308 advisers), 41% have been having more protection conversations since the implementation of the Consumer Duty, and 31% have been discussing a broader range of protection products - increasing by 7% since 2023.
AMI’s review also identified a shift in consumers taking a greater lead in raising protection with their mortgage broker, with a fifth (21%) of those who’d taken out a mortgage via their broker asking about protection – compared to 11% in 2023. Notably, four in ten (44%) said their broker raised protection with them which is 6% lower than in 2023.
Furthermore, 65% of Gen Z consumers viewed Income Protection (IP) as important (13% have a policy) which aligns with Eleos’ recent research which found 52% of IP policyholders are aged between 25-34 years old, indicating that younger adults are outpacing older demographics in purchasing these policies.
READ MORE: Eleos reports 52% of IP policies bought in the last two years were for those aged 25-34
29% of protection policyholders sought advice, with 34% recognising it as advice because it was delivered face-to-face, 22% because they spoke to someone, and 21% based on the adviser’s title. 15% of those who didn’t take out protection with a broker said earlier conversations about protection may have encouraged them to do so; more advisers now introduce protection in the fact-find (38%) than at the introduction (36%).
AMI’s full report will be presented at a virtual launch on the 5th November 2024, developed in partnership with Royal London and Legal & General (L&G). This launch will also unveil four key strategies to increase protection uptake.
“This year’s report, titled ‘Making Protection Personal’, highlights the importance of focusing on the customer’s needs and goals. Over the past five years, we’ve gathered important insights, and we’re excited to share actionable ideas to help firms and advisers overcome the barriers identified in our study,” explained Robert Sinclair, CEO of AMI.
Carrie Johnson, Protection Director at Royal London, added: “The Consumer Duty is emerging as a game changer for consumers. We’re already seeing an increase in the quality of advice, products, and ongoing service and I think we have yet to see its full impact. Coupled with increasing interest in protection amongst younger people, and the change in how advisers are making it a more integral part of the advice process, we’ll undoubtedly see better outcomes for customers and more opportunities for advisers.”
“The upcoming report highlights the great work and progress that we’re seeing, but also some key learnings and areas of opportunity. Tailoring protection to individuals is crucial for meeting the varied needs of modern consumers. Importantly, this report not only offers essential insights, but it also equips advisers with strategies to help them better serve their customers and further improve industry engagement,” concluded Vikki Jefferies, Market Development Director at L&G Retail.
