The Association of Mortgage Intermediaries (AMI) launched its fifth Protection Viewpoint Report ‘making protection personal’ in partnership with Royal London and Legal & General.
The report highlighted the need for a stronger customer focus that addresses individual needs and aspirations.
It included a four-point action plan to support advisers in adapting to the changing protection landscape.
The research found that 28% of consumers believed it should take no more than 48 hours from applying for protection to having it in place, while 25% expected it to take less than a week.
Younger consumers showed slightly different expectations, with 21% of Gen Z anticipating a 48-hour turnaround compared to 31% of Gen X.
Regarding claims, 44% of consumers expected a decision within a week, and 27% expect payment in that timeframe.
For the first time, AMI explored advisers’ views on insurer service levels, revealing mixed opinions.
While 28% of advisers reported a decline in service, 20% noted improvements.
In claims handling, 16% cited worsened service levels, while 12% observed better performance.
The report noted a positive trend in customer retention, with 65% of advisers actively working to keep protection policies in force, up from 60% in 2023.
More than half of advisers conduct regular policy reviews, and 16% remind clients of product flexibility and payment deferral options, leading to improved retention for 44% of those taking these actions.
Although 33% of consumers recalled receiving an annual statement from their insurer, only 16% said it prompted a policy review.
While consumers believe protection should be reviewed every 13.6 months on average, just 45% have done so in the past year, with reasons for not reviewing including unchanged personal circumstances (33%) and scepticism about the benefits (15%).
The report highlighted a desire for transparency in annual statements.
While many consumers wanted basic policy information, the most requested details included what the policy covers, premium amounts, policy end dates, guidance on how to make a claim, exclusions, and additional benefits.
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, said: “This year’s report underscores the growing role advisers play in keeping protection policies active, with more clients benefitting from regular reviews and tailored advice.
“However, the data also highlights areas where the industry can improve, particularly in meeting consumer expectations around policy issuance and claims processing.
“By addressing these gaps and enhancing communication, we can ensure more consumers are protected when they need it most.”
Sinclair added: “As we look ahead to the FCA’s upcoming Market Study on the Pure Protection Market, it’s important to recognise that whilst significant, it’s important not to lose sight of our ongoing mission—to ensure UK consumers receive appropriate protection advice every day.
“This year’s report, ‘Making Protection Personal,’ offers both valuable insights and a four-point action plan designed to help advisers better meet customers’ evolving needs.”
Vikki Jefferies, market development director at Legal & General Retail, said: “The findings from this year’s report clearly show that while we have made significant strides in engaging with clients and addressing their needs, there is still room for improvement.
“By focusing on transparency, ease of access, and personalised advice, we can better serve our customers and ensure they feel confident and secure in their protection choices.
“Importantly, there’s room for us, as providers, to support advisers when it comes to managing client expectations.
“It’s a challenging but exciting time for the industry.
“And I believe that by continuing to listen to our clients and adapting to their evolving needs, we can make significant progress.”
Carrie Johnson, protection director at Royal London, said: “It’s important to hear from consumers on how we are doing, and we’re always keen to listen to this feedback and to continue to improve.
“While technology has undoubtedly enabled us to offer more sophisticated and personalised cover, along with a broader range of value-added services, it can also create complexity.
“We need to remember protection products support customers at the most vulnerable times in their lives, so it’s crucial we treat them fairly and quickly when they need us.”
Joanna Streames from Velvet Mortgage and Insure Services said: “The findings highlight the growing importance of transparency and clarity in annual statements.
“It’s encouraging to see that receiving statements prompt some people to review their cover.
“The disparity in what consumers find most valuable suggests there is still work to be done to ensure statements are tailored to client needs, particularly for younger generations.”
Following this research, AMI has devised a four-point action plan to help advisers and insurers better connect with clients.
The action plan included building a human element upfront by taking time to understand personal circumstances before explaining products and making products easy and accessible by avoiding jargon.
It also focused on allowing clients to feel in control, giving them time to think and research, and emphasises the importance of highlighting how products can provide help in difficult situations, reassuring clients about their value.
