Recent data highlights a shift in recommendations by UK advisers, focusing on value in protection products over price.
- Protection Guru’s insights reveal that advisers now consider a combination of price and quality in making recommendations.
- This change aligns with new Consumer Duty Regulations, promoting a more value-driven approach to protection policy advice.
- Royal London and Guardian emerge as top recommendations when quality is factored into adviser decisions.
- Vitality products are increasingly favoured, showcasing advisers’ evolving preferences.
Protection Guru has published data indicating a significant shift in the behaviour of UK advisers using its Protection Guru Pro (PGP) service during the first half of 2024. The findings suggest a growing emphasis on recommending protection products based on their value proposition rather than purely on cost. The comparative analysis between recommendations from January to March and April to June underscores this evolving adviser behaviour.
This behavioural change among advisers is notably in line with the Consumer Duty Regulations, which advocate for improving consumer outcomes by ensuring that products offered are suitable and beneficial. By integrating both price and quality metrics, advisers are now increasingly empowered to make more informed decisions that align with regulatory guidance.
The data highlights that when both quality and price are taken into account, Royal London and Guardian have secured a substantial proportion of adviser recommendations. This reflects advisers’ recognition of the importance of combining affordability with quality to optimise client advice.
Moreover, the data indicates a surge in recommendations for Vitality products, signalling an evolving preference among advisers. This suggests that advisers are becoming more discerning in their product choices, favouring those that offer comprehensive benefits alongside cost-effectiveness.
Interestingly, advisers utilising PGP have been found to recommend products that rank mid-tier in quality, often the fourth or fifth best, but are positioned lower in terms of price, typically ninth or tenth. This trend illustrates a broader move towards prioritising value over initial price considerations.
Ian McKenna, founder of Protection Guru, remarked that the service is instrumental in helping advisers refine their practices by balancing price with quality across various protection products. He emphasised how such shifts are crucial for enhancing consumer outcomes in accordance with Financial Conduct Authority (FCA) guidance.
The protection market in the UK is witnessing a transformation as advisers place increased emphasis on value, reflecting compliance with regulatory standards.
