According to the Association of Mortgage Intermediaries’ (AMI) initial findings in its Protection Viewpoints report, which surveyed 254 IFAs and mortgage advisers, just under a third, 31 per cent said that there would be no change following Consumer Duty.
Around 24 per cent said they didn’t know if Consumer Duty would increase focus on protection, with only two per cent thinking it would reduce focus on protection.
Consumer Duty is a set of rules and guidelines introduced by the Financial Conduct Authority, which aim to set a clear standard of consumer protection and requires firms to more explicitly put customers’ needs first.
One of the key tenets is avoiding causing foreseeable harm, with the FCA saying firms need to be “proactive and reactive” in avoiding harm to customers through “conduct, products or services” which includes design, terms and conditions, marketing and support.
The report also showed that 37 per cent of advisers are not doing anything at present to help clients stay protected and to maintain existing protection policies.
However, almost half of advisers are conducting regular reviews with customers and a fifth are reiterating product flexibility and payment deferral options.
One in 10 are contacting customers about their cover and additional benefits available.
Stacy Penn, senior policy adviser at AMI, said: “We’re excited Viewpoint is back for a third year, shining a light on the views of consumers and advisers. ‘The Great Protection Shift’ encapsulates what we, as an industry, need to focus on if we are to propel the industry forward. It’s important the Consumer Duty is seen as an opportunity to accelerate change, as opposed to a barrier.
She continued that this year it also carried out qualitative research to five added depth to its findings and hoped the report would give “invaluable insight” to advisers.
Jeff Woods, head of intermediary development at Legal & General, said: “Legal & General are pleased to be working with AMI for the third year, taking a closer look at perceptions and misconceptions, the importance of communication and how consumers want to buy protection.
“We know how useful the previous reports have been to both advisers and providers, and so look forward to working with all parties again to deliver on the key actions.”
David Ellis, head of strategic partnerships at Royal London, commented: “Royal London is delighted to be part of the AMI Viewpoint Research again this year. It has become a seminal point in the trading year that draws us together as an industry to reflect on how we are doing to deliver the very best outcomes for mortgage and protection customers.
“Once again, “The Great Protection Shift” uncovers some interesting findings that we can all learn from.”
The full report is due out in two weeks and to register for the event please click here.
