The Association of Mortgage Intermediaries (AMI) has released preliminary findings from its latest study on protection in the mortgage sector, ahead of the launch of the fifth AMI Protection Viewpoint Report.
The report, developed in partnership with Royal London and Legal & General, explores themes including service standards, the impact of Consumer Duty, how customers review their protection needs, and perceptions of the advice process.
The study, entitled Making Protection Personal, surveyed 3,000 consumers and over 300 advisers. It found that 41% of advisers believe that Consumer Duty has improved the quality of consumer outcomes. Moreover, the research indicates that Consumer Duty has led to increased adviser engagement with protection insurance – 41% are having more protection conversations and 31% are discussing a broader range of protection products (up from 24% in 2023).
It also found a shift in consumers taking a greater lead in raising protection with their mortgage adviser. 21% of those who took out a mortgage through a broker asked them about protection, compared to 11% in 2023. 44% said their adviser raised protection with them compared to 50% in 2023.
Initial key findings from the study include:
- Gen Z interest in protection – 65% of young (Gen Z) consumers view income protection as important and 13% have it, compared to 48% and 5% of Gen X
- Adviser interaction: 29% of protection policyholders sought advice. Of those, 34% recognised it as advice because it was delivered face-to-face (rising to 56% among Boomers), 22% because they “spoke to someone”, and 21% based on the adviser’s title
- Timing of protection discussions: 15% of those who did not take out protection with a broker said earlier conversations about protection may have encouraged them to do so. More advisers now introduce protection in the fact-find (38%) than at the introduction (36%).
The full findings will be presented at a virtual launch event on Tuesday 5 November 2024 in partnership with Royal London and Legal & General. The event will unveil four key strategies to increase protection insurance uptake, providing insights for advisers, advice firms, and insurers. To register for the event, click here: AMI Viewpoint 2024 event registration
Robert Sinclair, AMI chief executive, said: “This year’s report, titled Making Protection Personal, highlights the importance of focusing on the customer’s individual needs and goals. Over the past five years, we’ve gathered important insights, and we’re excited to share actionable ideas to help firms and advisers overcome the barriers identified in our study. We encourage everyone to join us on November 5th to hear more about these insights and learn how they can grow their business.”
Carrie Johnson, protection director at Royal London, added: “The Consumer Duty really is emerging as a game changer for customers. We are already seeing an increase in the quality of advice, products and ongoing service and I think we have yet to see its full impact.
“Coupled with increasing interest in protection among younger people, and the change in how advisers are making it a more integral part of the advice process, we will undoubtedly see better outcomes for customers and more opportunities for advisers. It’s now up to us as an industry to maximise this opportunity for all.”
