AMI partners with FCA to strengthen protection advice
The initiative follows the publication of the FCA Pure Protection Market Study, which found that 58% of adults had no life insurance, critical illness cover or income protection.
The Association of Mortgage Intermediaries (AMI) is to lead a cross-industry initiative aimed at strengthening adviser confidence and consistency when discussing protection with customers.
The initiative follows the publication of the Financial Conduct Authority’s (FCA) Pure Protection Market Study, which found that 58% of adults had no life insurance, critical illness cover or income protection.
Of those without cover, 59% had never considered their protection needs.
The FCA has asked AMI to lead the adviser workstream, with a focus on improving protection conversations throughout the advice journey and at key life stages, particularly among underserved consumers.
AMI will bring together advisers, firms and other industry stakeholders to develop practical support that can be adapted to different advice models and business requirements.
The work will build on existing industry activity and draw on findings from AMI’s annual Viewpoint research.
Stephanie Charman (pictured), 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.”
She added: “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.”
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