A recent report by the Association of Mortgage Intermediaries (AMI) unveils key findings on consumer expectations for protection coverage.
- Twenty-eight per cent of consumers expect protection coverage to be in place within 48 hours, while a further 25% anticipate this within a week.
- Gen Z consumers show different expectations compared to Gen X, with fewer expecting 48-hour coverage.
- There is a varied perception of insurer service levels amongst advisers, with some noting improvements and others declines.
- The report outlines a four-point action plan to help advisers better meet consumer needs.
The Association of Mortgage Intermediaries (AMI) has recently released its fifth Protection Viewpoint Report, ‘making protection personal’, developed in collaboration with Royal London and Legal & General. This report brings to light significant insights on consumer expectations regarding protection coverage timelines. 28% of consumers surveyed believe protection should be in place within 48 hours, and an additional 25% expect it within a week. These findings suggest a pressing need for more efficient coverage deployment.
Interestingly, the report highlights generational differences in expectations. It notes that 31% of Gen X participants expect a 48-hour turnaround, while this drops to 21% among Gen Z. Regarding claims, the research found that 44% of consumers expect decisions within a week, with 27% anticipating payment in that same period. These expectations underscore the necessity for expediency in insurance processes.
The report’s exploration of adviser opinions reveals a mixed response to insurer service levels. While 28% perceive a deterioration in service, a notable 20% acknowledge improvements. In particular, claims handling remains a contentious area, with 16% reporting a decline in service levels against 12% witnessing enhancements. This disparity suggests room for growth in aligning service delivery with consumer expectations.
An encouraging development noted in the report is the rise in customer retention efforts. Currently, 65% of advisers actively strive to keep protection policies active, which is an increase from previous years. Furthermore, many advisers regularly review policies, with 16% reminding clients about product flexibility and the option to defer payments. These strategies have led to improved retention for a significant proportion of those involved.
Consumer awareness and engagement with policy details are varied. The report shows that 33% of consumers recall receiving an annual statement, though only 16% are prompted to review their policies. On average, consumers believe reviews should occur every 13.6 months, yet only 45% have done so. Obstacles such as unchanged personal circumstances and doubts about benefits have been cited for this inactivity.
The findings of AMI’s report highlight an ongoing imperative for the industry to meet evolving consumer expectations effectively.
