The protection gap is the estimated amount that British residents are under-insured by to maintain their lifestyles should the worst happen.
Brokers attending Mortgage Solutions’ The Mortgage and Protection Event were told to concentrate on their own penetration rates and the income they could be missing out on for just doing the right thing.
Speaking at the Manchester event, Simply Biz Mortgages chief executive Martin Reynolds (pictured), said: “I think we should ignore that [figure] and you should just look at your own business and what’s my protection penetration rate.”
He urged advisers to consider the option to increase penetration rates and think about what support they might need.
“What can you do about the bit you have control over which is your client bank and get that penetration rate better?” he continued.
Gareth Herbert, sales director of Mortgage Advice Bureau, agreed that the protection gap figure was almost meaningless to advisers.
But he suggested another method of driving greater coverage within the population.
“Also look at income gaps,” he said.
“How much is it costing you for your business to lose out on that income? Look at that gap then that will tell you how much revenue you are missing out on for doing the right job.
“That gap analysis, I always find it quite surprising when I sit with businesses and consult with them and they don’t realise what they don’t know,” he added.