The Association of Mortgage Intermediaries’ (AMI) fourth annual protection viewpoint report found that more than a third of firms had no online presence for their protection services.
Of those that do, 53 per cent of adviser firms had a protection section on their website and just 18 per cent had online guides and articles on the topic.
Nearly a quarter of firms said they posted about protection on social media and only five per cent had an online quote form for potential clients.
AMI found that 13 per cent of advisers personally created protection content on social media.
As for the platforms being used, 88 per cent of respondents said they used Facebook, 59 per cent utilised LinkedIn and 59 per cent used Instagram. Just 11 per cent used TikTok or YouTube while 18 per cent were active on X (formerly known as Twitter).
A vital client base
AMI said this could stop them from reaching their desired audiences and the younger generation.
Although TikTok and YouTube were used the least by advisers, AMI found that around 90 per cent of Gen Z use this social media. However, the younger generation tended to believe protection was more important than their older counterparts, with 78 per cent of Gen Z and 76 per cent of millennials saying so, compared to 66 per cent of Gen X and 58 per cent of boomers.
Nearly a third of all consumers said they preferred to use price comparison websites to buy protection, but younger people are less likely to do so compared to older consumers.
A quarter of Gen Z consumers said they would prefer to do this in person, compared to 21 per cent of all adults.
However, respondents did not seem to recognise the value of going to an adviser as a fifth were unable to name any benefits of doing this.
For those who did cite advantages of getting advice, knowledge, regulatory status and being able to speak to a person were named as the main benefits.
Independence of advice
Consumers expressed doubts over the impartiality of advisers, as only 16 per cent believed they were unbiased towards a particular client or insurer. By comparison, 37 per cent of people felt price comparison sites were independent or impartial.
Some 47 per cent of consumers said advisers were motivated by commission when discussing protection.
Robert Sinclair, chief executive of AMI, said: “In this year’s Viewpoint we particularly wanted to understand the behaviours and opinions of younger consumers – our industry’s future customers – and how they potentially differ from older generations. “We’ve seen some positive indicators that present a reason for the industry to feel optimistic, including a higher proportion of Gen Z respondents viewing protection insurance as important compared to older consumers. However, there is work to be done to fully realise this potential.
“As part of this year’s Five Point Action Plan, we call on advice firms to assess whether it’s clear to consumers the role they play in the protection advice process and the value of good advice. Our recommendations also include actions for advisers, providers and AMI itself, as we all need to commit to making a difference if we are to fill the perception gap.”
Julie Godley, director of intermediary at Legal and General, said: “It is encouraging to see that for younger consumers, protection is important. These insights provide fantastic opportunities for advisers and providers alike to adapt, embrace technology and communicate the value they can bring to Gen Z and millennials. But the onus is not just on the adviser.
“Providers also have an opportunity to provide engaging digital content which resonates with a younger customer that advisers can share across several online platforms.”
