Recent findings reveal growing interest in protection among advisers, driven by Consumer Duty insights.
- A significant portion of advisers recognise improved consumer outcomes, resulting in increased protection discussions.
- The research shows a notable rise in advisers introducing a broader range of products to their clients.
- Consumer interest in protection with advisers has notably increased since the previous year.
- Younger generations are placing greater importance on protection, with marked interest in income protection.
Recent findings from the Association of Mortgage Intermediaries’ 2024 Protection Viewpoint Report underscore the growing interest in protection discussions among advisers, largely driven by Consumer Duty regulations. Surveys conducted by AMI, in collaboration with Royal London and Legal & General, involved inputs from 3,000 consumers and more than 300 advisers, unveiling significant trends in service standards and client perceptions. The report highlights that 41% of advisers have noticed an enhancement in consumer outcomes due to Consumer Duty. This has translated into 41% of advisers having more frequent protection conversations with clients, compared to previous years.
Furthermore, the report indicates a broadening scope in the protection products discussed by advisers. In 2024, 31% of advisers reported introducing a wider range of products, reflecting an increase from 24% in 2023. This trend emerges as a substantial development for the industry, signalling a shift in how advisers approach product discussions.
Consumer interest in protection has also seen a rise. The report notes that 21% of mortgage customers initiated conversations about protection in 2024, up from 11% the previous year. While there has been a slight dip to 44% from 50% in the proportion of advisers raising protection topics themselves, this shift indicates a more proactive consumer base engaging with their advisers on protection matters.
The insights further illustrate a strong interest in protection by younger demographics, particularly Gen Z. With 65% valuing income protection as significant and 13% having acquired a policy, these figures starkly contrast with Gen X, where only 48% value such protection and a mere 5% hold a policy. This trend underscores a growing prioritisation of protection among younger generations, a noteworthy shift in consumer behaviour.
Further nuanced insights were shared by key industry figures. Robert Sinclair, Chief Executive of AMI, emphasised the importance of tailoring protection to individual client needs, describing the report as crucial for identifying and overcoming barriers in the sector. According to Carrie Johnson, Protection Director at Royal London, Consumer Duty has emerged as a pivotal factor enhancing the quality of advice and services provided to customers. Meanwhile, Vikki Jefferies from Legal & General Retail stressed the necessity for the industry to adapt protection offerings to modern consumer needs, thereby improving industry engagement.
The growing emphasis on protection, bolstered by Consumer Duty, signals a promising evolution in the engagement and outcome for both advisers and clients.
