Consumer Duty is transforming adviser-client dynamics in the protection sector.
- Preliminary findings from AMI’s 2024 Protection Viewpoint Report show a 41% increase in protection conversations among advisers.
- Advisers report a broader range of protection products being discussed, rising from 24% in 2023 to 31% this year.
- Generation Z’s interest in income protection is notable, with 65% acknowledging its importance.
- Face-to-face advice remains relevant, especially amongst boomers, with 34% seeking in-person consultations.
The Association of Mortgage Intermediaries (AMI) has revealed that the newly instituted Consumer Duty is significantly altering interactions between advisers and clients in the protection sector. According to the preliminary results from AMI’s 2024 Protection Viewpoint Report, an overwhelming 41% of advisers have noted an increase in protection-related discussions with clients.
In terms of product diversification, the report indicates that advisers are not only having more conversations about protection but are also exploring a wider variety of products. The percentage of advisers discussing a broader range of protection options has seen a noteworthy climb from 24% in the previous year to 31% in the present.
The report also sheds light on the evolving demographic landscape, with Generation Z showing a keen interest in protection. A substantial 65% of this demographic views income protection as crucial, and 13% already hold such policies. This figures starkly contrast with Generation X, where only 48% acknowledge its importance and a mere 5% have policies.
Face-to-face interaction continues to be a pillar in receiving financial advice, particularly among the older demographic. The data reveals that 29% of all policyholders sought advice when obtaining protection, and this preference for personal interaction climbs to 56% amongst Boomers, emphasising the ongoing relevance of in-person consultations.
Robert Sinclair, CEO of AMI, emphasised the need for personalised approaches to protection, asserting that addressing customers’ unique needs and objectives is paramount. His sentiments are echoed by Carrie Johnson from Royal London, who regards the Consumer Duty as a transformative factor poised to enhance customer outcomes significantly.
Vikki Jefferies from Legal & General highlights the report’s role in offering critical insights and strategies for advisers. She points out that personalising protection plans to fit individual consumer needs is essential for improving industry involvement and meeting the modern consumer’s varied demands.
The Consumer Duty is pivotal in reshaping the protection landscape, enhancing client-adviser engagement and offerings.
