The study by the Association of Mortgage Intermediaries (AMI) surveyed 3,000 adults and 308 advisers in August this year.
It looked at several industry issues, including service standards, the impact of Consumer Duty, how customers review their protection needs and perceptions of the advice process.
It claimed that a fifth – at 21% – of those who took out a mortgage through a broker asked about protection, compared to 11% in 2023.
At the same time, four in 10 – 44% – said their adviser raised protection with them compared to 50% last year.
More advisers having more protection conversions
Advisers who confirmed that this is what they were seeing on the ground included Rachel Lummis, mortgage and protection adviser at Xpressmortgages.
Going digital
Sponsored by Halifax Intermediaries
She said: “There has been a markable rise in advisers having more protection conversions and introducing a wider variety of products.
“There has also been an increase in the occasions where consumers are raising the question of protection with their advisers, showing they are very much open to discussions.
“These insights are going to shine a light on the opportunities available to advisers in the protection space.”
The AMI study also showed that 41% of advisers believe that Consumer Duty improved the quality of consumer outcomes.
In addition, the rules have led to increased adviser engagement with protection insurance.
A total of 41% of advisers are having more protection conversations and 31% are discussing a broader range of protection products, up from 24% in 2023.
Robert Sinclair, AMI’s chief executive, said: “This year’s report, titled ‘Making Protection Personal’, highlights the importance of focusing on the customer’s individual needs and goals.
“Over the past five years, we’ve gathered important insights, and we’re excited to share actionable ideas to help firms and advisers overcome the barriers identified in our study.”
The survey went on to reveal that 65% of young consumers – defined as Gen Z – view income protection as important and 13% have it, compared to 48% and 5% of Gen X respectively.
Meanwhile, 29% of protection policyholders sought advice.
Of those, 34% recognised it as advice because it was delivered face-to-face – rising to 56% among Boomers – 22% because they “spoke to someone”, and 21% based on the adviser’s title.
In addition, 15% of those who did not take out protection with a broker said earlier conversations about protection may have encouraged them to do so.
More advisers now introduce protection in the fact-find – at 38% – than at the introduction – 36%, the survey also revealed.
The full findings will be presented at a virtual launch event on Tuesday 5 November 2024 in partnership with Royal London and Legal and General.
The event will unveil four key strategies to increase protection insurance uptake, providing valuable insights for advisers, advice firms, and insurers.
To register for the event, click here
Carrie Johnson, protection director at Royal London said: “The Consumer Duty really is emerging as a game changer for customers.
“We are already seeing an increase in the quality of advice, products and ongoing service and I think we have yet to see its full impact.
“Coupled with increasing interest in protection among younger people, and the change in how advisers are making it a more integral part of the advice process, we will undoubtedly see better outcomes for customers and more opportunities for advisers. It’s now up to us as an industry to maximise this opportunity for all.”
Vikki Jefferies, market development director at Legal and General Retail, added: “The upcoming report highlights the great work and progress that we’re seeing, but also some key learnings and areas of opportunity.
“Tailoring protection to individuals is crucial for meeting the varied needs of modern consumers.
“Importantly, the AMI Protection Viewpoint Report not only offers essential insights, but it also equips advisers with strategies to help them better serve their clients and further improve industry engagement.”
