In the Association of Mortgage Intermediaries’ (AMI’s) Protection Viewpoint, 56% of advisers said they use customer referrals or recommendations, while 21% go to professionals outside of their business, like any estate agency or solicitor.
Around 20% said they get leads from their own website and 12% said they get leads from within the same business.
Approximately 13% said they don’t obtain any protection leads.
Customers were asked when they would like to be referred for protection during the mortgage process, with 30% saying their preference was during and 28% stating that they would want this to occur at the start of the mortgage process.
The AMI said this shows the “importance of timing and positioning”.
Mind the affordability gap
Sponsored by Newcastle for Intermediaries
“Introducing protection early – whether directly or via referral – is critical. Consumers are mostly happy to be referred, which could help advisers overcome any hesitations they may have. When referring, it’s important to coordinate closely with others to ensure a smooth effective process,” it said.
More than half of consumers said they would be happy to be referred to another business or adviser who could help with protection.
Fewer advisers carrying out protection reviews at remo stage
Advisers were asked about when they carry out protection reviews, and 85% said they would review protection at the remortgage stage, which is a drop from 92% in 2021.
Around two-thirds said they would revisit protection when customers move to a new home, 49% said they would revisit when they have a baby and 42% said they would revisit if there was a divorce.
Only 36% said they would review protection when customers get married, 27% said they would do so when there was a job move and 22% said they would review it when there was a health scare or diagnosis.
The AMI said the drop in protection reviews at the remortgage stage likely reflects a “challenging period marked by fluctuating mortgage rates, a move from remortgages to product transfers and the financial shock for consumers exiting ultra-low fixed rates”.
“Most advisers recognise the importance of ongoing protection reviews; however, the timing and structure of these reviews vary considerably across the market. It’s important to strengthen protection conversations around key life events and maintain consistent ongoing dialogue.
“Staying front of mind with customers is crucial – if you aren’t engaging, someone else will be,” it added.
Approximately 37% of advisers said they would carry out protection reviews set times tied to a fixed event like a mortgage product maturity, while 31% said they would do it at regular intervals determined by themselves.
Around 12% said they do not carry out protection reviews at all after the initial advice process.
Michelle Niziol, CEO of IMS Independent Mortgage Solutions, said: “It’s all about building relationships rather than transactions. Advisers should create touchpoints throughout the year, not just when a mortgage deal is due for renewal. A simple check-in call, a personalised email, or sharing relevant updates on the market makes a huge difference.”
The AMI called on providers and advice firms to take action to raise awareness of guaranteed insurability options and existing flexible features, and review how they are working in practice to see how they can be improved.
Insurers, reinsurers and tech providers should also explore developing protection product transfer equivalents.
