The Association of Mortgage Intermediaries (AMI) has shared preliminary findings from its 2024 Protection Viewpoint Report, indicating increased engagement with protection among advisers due to Consumer Duty.
The report, conducted in partnership with Royal London and Legal & General, surveyed 3,000 consumers and more than 300 advisers, covering service standards and client perceptions.
The research found that 41% of advisers believe Consumer Duty improved consumer outcomes.
It also revealed that 41% of advisers were having more protection conversations, while 31% were discussing a wider range of protection products, an increase from 24% in 2023.
Additionally, 21% of mortgage customers asked their advisers about protection, up from 11% in 2023, although 44% said their adviser raised protection topics compared to 50% the previous year.
Key insights included a strong interest in protection from Gen Z, with 65% viewing income protection as important and 13% having a policy, compared to 48% and 5% among Gen X.
The study noted that 29% of policyholders sought advice when taking out protection; of these, 34% engaged in face-to-face interactions, rising to 56% among Boomers.
Robert Sinclair, chief executive of AMI, 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.”
Rachel Lummis, mortgage and protection adviser at Xpressmortgages, said: “With the eagerly anticipated AMI protection viewpoint report just weeks away from being launched, the initial key findings will be warmly welcomed.
“There has been a remarkable rise in advisers having more protection conversations and introducing a wider variety of products, as well as an increase in the occasions where consumers are raising the question of protection with their advisers, showing they are very much open to discussions.
“These insights are going to shine a light on the opportunities available to advisers in the protection space, and the full report promises to deliver.”
Carrie Johnson, protection director at Royal London, said: “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.”
Vikki Jefferies, market development director at Legal & General Retail, said: “The upcoming report highlights the great work and progress that we’re seeing, but also some key learnings and areas of opportunity.
“Tailoring protection to individuals is crucial for meeting the varied needs of modern consumers. Importantly, the AMI Protection Viewpoint Report not only offers essential insights but also equips advisers with strategies to help them better serve their clients and further improve industry engagement.”
