The Association of Mortgage Intermediaries’ AMI’s 2025 Protection Viewpoint report found that 18% of British adults started the process of buying protection insurance but abandoned it.
This figure went up to 25% among under-35s.
The survey showed the biggest drop-off happened after getting a quote, with 47% leaving at this stage.
The rate was higher for people aged 55 and over at 56% and for men at 52%.
A total of 26% dropped out after the initial application and 20% left after just researching their options.
Most people began their protection journey online, with only 24% starting by speaking to someone face-to-face.
Of those who went online, 31% started via a specific website, another 31% through price comparison sites and 26% using a search engine.
Even with digital options, around 70% said having a real person involved was important at every stage, including younger people.
Stephanie Charman, CEO of AMI, said: “Too many consumers are dropping out of the protection buying process.
“As an industry it’s important we take the time to review the customer journey more closely.
“By identifying where pinch points occur and considering where we can signpost to advice, we can help more people get the cover they want and need.”
Charman added: “Viewpoint is designed to be the start of an ongoing dialogue.
“This year’s report places an emphasis on clear calls to action, which AMI will be actively driving forward throughout 2026.
“We encourage industry to reflect on the part each of us plays – it’s vital we continue to work together to meet the needs of consumers and advisers alike.”
The report also found 35% of people trusted artificial intelligence (AI) to answer protection questions or give recommendations, but this jumped to 54% and 57% among under-35s.
Only 27% trusted AI to help make final decisions.
On the adviser side, just 20% felt confident using AI in their daily work.
A total of 27% saw automation and AI as a threat to the advice sector.
Advisers were most positive about using AI for producing client documents (49%) and managing application pipelines (39%), but less positive about AI making recommendations (25%) or handling first customer interactions (25%).
Jamie Page, head of protection distribution at The Exeter, said: “This year’s Viewpoint research reinforces what we see every day.
“That human connection is still at the heart of protection.
“Even the most digitally savvy consumers want empathy, reassurance and real conversations when making decisions about their future.
“As proud sponsors, we believe the future lies in blending smart technology with trusted advice – not replacing it.”
Vikki Jeffries, market development director at Legal & General’s Retail business, said: “The Viewpoint research highlights a clear opportunity for the industry to evolve how we engage with customers.
“It’s not just about products; it’s about fostering connection, meaningful touchpoints, and trust to ensure people feel confident in their choices.
“Whether customers start their protection journey online or in person, advisers play a vital role in guiding them through life’s uncertainties and addressing their individual needs.”
Jeffries added: “Providers must also step up by offering advanced tools, proactive support, and helping firms develop impactful engagement strategies that truly resonate with customers.
“As an industry, we can make significant progress by listening to customers and adapting to their evolving needs.”
Jon Fuller, protection distribution director at Royal London, said: “AMI’s latest Viewpoint report highlights a critical challenge: too many people begin the protection journey but don’t complete it.
“While the growing influence of AI, especially among younger consumers offers convenience, it’s clear that AI is yet to win over the majority at the final hurdle, as just 27% of consumers trust it to help them make final decisions about their protection needs.
“We must ensure that consumers, especially younger ones, feel confident, informed and supported, whether they’re researching online or speaking to an adviser.”
Fuller added: “By working together, we can close the gap between intention and action, helping more people secure the cover they need.”
