Data from Protection Guru shows UK advisers increasingly value product quality over cost.
- Recommendations for protection products now focus more on value, influenced by Consumer Duty Regulations.
- Royal London and Guardian stand out, with Vitality rising in preference for quality-focused advisers.
- Advisers are choosing the fourth or fifth best product based on quality, despite higher costs.
- Founder Ian McKenna confirms behaviour change towards better consumer outcomes.
In a notable shift within the UK protection market, advisers are increasingly prioritising the value of protection products over their price. This change, highlighted by data from Protection Guru, reflects a broader trend towards quality-focused recommendations, with advisers placing greater emphasis on the intrinsic value of the products they endorse. This approach aligns with the Consumer Duty Regulations that aim to guide financial services towards more customer-centred practices.
The data analysis, which spanned the first half of 2024, revealed a significant behavioural change among advisers. It compared the recommendations made from January to March against those from April to June. During this period, there was a marked increase in the preference for products that deliver high value, rather than merely competing on cost. This emerging trend underscores the potential for substantial changes in how protection advice is tailored to meet client needs.
Advisers utilising the Protection Guru Pro (PGP) service showed a distinct shift in their recommendations. Products from Royal London and Guardian emerged as frequent choices, attributed to their perceived higher quality in the market. Additionally, there was a noticeable trend towards Vitality, as advisers evaluated both cost and quality when making their suggestions.
Interestingly, even though advisers often selected products that were ranked ninth or tenth in terms of price, these offerings were consistently seen as the fourth or fifth best concerning quality. This disparity indicates a deliberate preference for quality over price, which can ultimately lead to more favourable outcomes for consumers seeking robust protection plans.
Ian McKenna, founder of Protection Guru, emphasized the significance of these findings, stating, “By taking price and quality into account across the full range of protection products, we give advisers the tools to do their job in the best possible way, and follow the FCA’s guidance under the Consumer Duty Regulations.” This statement underscores the critical move towards better consumer outcomes, driven by data-informed strategies.
The emerging trend of valuing quality over cost in the protection market highlights a pivotal change in adviser practices.
