Helping clients protect what matters most – Bamford

The research shows that nearly one in five consumers begin the process of arranging protection but never complete it, rising to one in four among those under 35. Awareness is improving, the process clearly gets going, but follow-through is not.

At the same time, the study found 82% of advisers saying they advise on protection directly, yet fewer than four in 10 borrowers recall them. So while the discussion is taking place, there is clearly work to be done in ensuring these conversations cut through.

That matters because the protection gap remains wide. Too many borrowers still have no cover at all – not even enough to meet their monthly mortgage payment if their income stopped. In a higher cost-of-living environment where confidence and budgets are under strain, that’s a risk few households can afford to take.

The timing of this report is interesting when compared to further research from expUK that suggested almost half of first-time buyers are waiting until after this month’s Budget before making any sort of decision or acting. I suspect that feeling is going to be mirrored across all types of homebuyers/sellers/movers.

While that pause may be frustrating for advisers keen to keep cases moving, it perhaps also opens another opportunity to revisit protection needs with this client cohort. For example, reviewing income protection arrangements now can help ensure that when clients do press ahead with their plans, they do so with stronger financial safeguards in place.

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It’s also worth noting first-time buyer activity has held up well this year. That should have been good news for short-term income protection products, yet sales of accident, sickness and unemployment (ASU) cover have stayed flat.

Given that an average policy costs around £34 per month and can cover mortgage payments as well as some essential bills, this type of protection deserves a far greater share of attention. It offers a practical, affordable way for new homeowners to protect themselves at a time when their finances are often stretched.

Longer-term protection options will always be important, but they can feel out of reach for those just starting out on the homeowning journey. Short-term cover, including unemployment-only policies can provide a simple first step. It’s a straightforward product that allows clients to build confidence in the value of protection without committing to higher-cost, longer-term solutions right away.

Beyond first-time buyers, there are clear review opportunities elsewhere. Many homeowners are coming to the end of fixed rates and looking at remortgage options or product transfers. These are natural moments to review cover, check affordability, and make sure existing protection still fits the client’s situation. That conversation can be as valuable to a returning client as it is to a new one.

Completion, not awareness, is the issue

The AMI report also highlights how technology is shaping behaviour. More consumers are using artificial intelligence (AI) tools to gather information about protection, but fewer than three in 10 say they would trust AI to help make the final decision.

People, of course, still want reassurance from an adviser who understands their personal circumstances. That reinforces the value of human advice not just to explain products, but to give clients confidence to act.

Ultimately, the message from the AMI’s research seems to be that awareness isn’t the problem, completion is. Advisers are raising protection in conversations, but clients still aren’t taking the next step. That gap is where the industry must focus its efforts.

Protection advice isn’t about selling another policy. It’s about helping clients stay in their homes and maintain stability when life changes unexpectedly.

Whether it’s during a Budget lull, a first-time purchase, or a remortgage review, there are plenty of natural points to bring protection back into the conversation, and hopefully advisers can present plenty of good reasons to make sure it sticks.