But the firm has cautioned that advisers and providers must first ensure they truly understand customer vulnerability if the sector is to deliver on the strategy’s ambitions.
The Government’s plan aims to widen access to financial services and dismantle systemic barriers, creating a system that “works for all”. Its proposals span mental health, accessibility and economic abuse, and seek to improve education, strengthen resilience and better support those who are vulnerable or currently underserved.
Protection and general insurance are recognised within the strategy as key tools in helping households withstand financial shocks. Yet it also acknowledges that vulnerable people and those on low incomes are still less likely to hold insurance or have sufficient cover in place.
MorganAsh has voiced strong support for efforts to close these gaps, especially in relation to contents insurance and income protection. The firm also welcomes calls for enhanced support for victims of economic abuse – an area where longstanding issues with joint life policies continue to affect consumers.
However, MorganAsh warns that many firms are still struggling to identify who their vulnerable customers actually are. Without robust systems, processes and aligned data, the company argues, advisers risk misjudging needs, offering unsuitable products or failing to provide the personalised support required under Consumer Duty.
Andrew Gething, managing director of MorganAsh, said: “It is positive to see that general insurance and protection are key considerations within the Government’s Financial Inclusion Strategy, recognising the sector’s essential role in building financial resilience. It make some very important points for all firms across financial services – and identifies key actions required to close gaps and increase access for all, whether that’s insurance, banking and affordable credit – or tackling problem debt and financial illiteracy.
“The strategy correctly identifies the significant protection gap, especially among those who are low earners or are vulnerable. Increasing inclusion can only start by understanding those currently being excluded and what the barriers of entry may be – whether it’s perception, understanding, trust or a lack of products or support. These deeper insights are only possible with the right technology and processes in place to properly segment a firm’s customer base, understand their circumstances and importantly, the outcomes they are receiving.”
Forthcoming vulnerability guidance from the Chartered Insurance Institute (CII), expected immediately before the Budget, is set to place significant emphasis on systems, data infrastructure and reporting. The new guide aims to give firms across insurance and personal finance practical direction on meeting Consumer Duty obligations and improving support for vulnerable customers.
MorganAsh’s own contribution to this landscape is its MARS platform, developed to help firms identify and monitor vulnerable customers, which is already in use across financial services and the utilities sector to support better outcomes under Consumer Duty.
“The upcoming guidance will support firms across insurance and personal finance to embed the values and principles of Consumer Duty and good vulnerability management,” Gething added. “With these solid foundations in place, firms are then able to unlock the competitive advantage of Consumer Duty and the commercial benefits of personalising products and services – and supporting customers in a deeper, more meaningful way. Just as important is the role businesses can then play in supporting the government's mission to drive social mobility and improve financial inclusion.”
