The Association of Mortgage Intermediaries is to lead a cross-industry programme aimed at improving the way advisers discuss protection with customers.
The work follows publication of the Financial Conduct Authority’s final report into the distribution of pure protection products, which identified a sizeable protection gap and called for greater adviser engagement.
The FCA found that 58% of people do not hold any protection products, including life insurance, critical illness cover or income protection. Of those without cover, 59% have never considered their protection needs.
Under the new initiative, AMI will bring together advisers, firms and other industry stakeholders to develop practical support intended to improve confidence and consistency in protection conversations.
The regulator’s report said it wants protection to be considered more frequently at key life and financial events, including when people buy a property, alongside wider work to improve consumer awareness and access to cover.
The FCA said the industry-led adviser engagement programme forms part of a broader package of measures designed to narrow the protection gap without introducing new market-wide rules. It expects the work to begin by the end of 2026, with meaningful progress over the following 12 to 18 months.
AMI said the initiative will be designed so that firms can adapt the resulting support to different advice models and business needs. It will also draw on existing industry work and AMI’s annual Viewpoint research.
Stephanie Charman, chief executive of AMI, said: “The FCA’s report recognises the important role advisers have to play in helping more consumers understand their protection needs and make informed decisions.
“We are excited to be leading this work and want to use the opportunity to bring the industry together around practical solutions. This is not about creating another initiative or adding unnecessary complexity for firms.
“It is about developing support that gives advisers greater confidence and helps them have more effective protection conversations with their customers.
“Closing the protection gap will require action across the market, and advisers have a central role to play. More frequent and meaningful protection conversations can help more consumers understand their options and make informed decisions, leading to better outcomes for them and their families.
“Member engagement will be central to that process. We want firms and advisers from across the market to share their experiences, contribute their ideas and help us develop an approach that delivers lasting improvements for consumers.”
AMI will work with other trade bodies and stakeholders as the programme develops, with further details and opportunities for members to contribute due to be announced in the coming weeks.
