A recent report by the Association of Mortgage Intermediaries (AMI) highlights shifting expectations in the UK protection market.
- According to AMI, 28% of consumers expect protection coverage to be secured within 48 hours after application.
- The report shows a generational divide in expectations, with younger consumers often expecting quicker turnarounds.
- Mixed reviews were observed among advisers on insurer service levels, with some noting improvements while others cited declines.
- The research underscores the importance of regular policy reviews and a need for greater transparency in annual statements.
The Association of Mortgage Intermediaries (AMI) in its fifth Protection Viewpoint Report underscores a significant shift in consumer expectations concerning protection coverage timelines. A noteworthy 28% of consumers believe protection should be in place within 48 hours of application, reflecting a demand for fast service in an era where digital solutions promise convenience and speed. The research also notes that 25% expect coverage within a week, highlighting a spectrum of expectations across the consumer base.
Generational insights reveal interesting contrasts, with 21% of Gen Z expecting a 48-hour turnaround compared to 31% of Gen X. These figures suggest that younger consumers, accustomed to the rapid pace of digital transactions, are less demanding than their older counterparts. This variation indicates a need for the industry to cater to different expectations while maintaining efficiency in service delivery.
Advisers have voiced mixed opinions on the service levels provided by insurers. The report details that while 28% of advisers observed a decline in service, 20% reported improvements, highlighting a varied landscape of service quality. In claims handling, there were similar disparities with 16% citing worsened levels, yet 12% noted better performance. This mixed feedback points to an area of potential improvement in maintaining consistent service standards.
The report also highlights a positive trend in customer retention, with 65% of advisers taking active steps to keep protection policies ongoing, a rise from 60% in 2023. More than half conduct regular policy reviews, which contribute to improved retention rates for 44% of advisers employing these strategies. Despite these efforts, only 16% of consumers are prompted to review their policies upon receiving annual statements, signalling a gap in engagement and perceived value.
Additionally, the research identifies a consumer desire for more transparency in annual statements, particularly in younger demographics. Consumers express interest in knowing basic policy details such as coverage, premium amounts, end dates, and the process of making a claim. The report stresses the importance of clear communication and simplification to enhance consumer understanding and confidence in their policies.
Commentary from industry leaders highlights the importance of improving communication and transparency. Robert Sinclair from AMI mentions the advisory role in keeping policies active and addressing consumer expectations. Vikki Jefferies from Legal & General emphasises the need for personalised advice to better serve clients, while Carrie Johnson of Royal London calls for fair and swift treatment of clients. These insights suggest that incorporating consumer feedback and adopting client-centric approaches could significantly advance industry practices.
The AMI report calls for greater transparency and efficient service to meet evolving consumer demands.
