The Association of Mortgage Intermediaries (AMI) is leading a cross-industry initiative to strengthen adviser confidence and consistency in discussing protection with customers, following the publication of the FCA’s Pure Protection Market Study.
The FCA found that 58% of adults have no life insurance, critical illness cover or income protection, with 59% of those without cover having never considered their protection needs.
The regulator has asked the AMI to lead the adviser workstream, helping firms improve protection conversations throughout the advice journey and at key life stages, particularly for underserved consumers.
The Association will bring together advisers, firms and industry stakeholders to develop practical support that can be adapted to different advice models and business needs. The work will build on existing industry activity and draw on AMI’s annual Viewpoint research.
The FCA says it expects "meaningful progress" over the next 12 to 18 months, with the AMI set to announce further details of the initiative and opportunities for members to contribute in the coming weeks.
Stephanie Charman (pictured), chief executive of the AMI, said: “The FCA’s report recognises the important role advisers have to play in helping more consumers understand their protection needs and make informed decisions.
“We are excited to be leading this work and want to use the opportunity to bring the industry together around practical solutions. This is not about creating another initiative or adding unnecessary complexity for firms. It is about developing support that gives advisers greater confidence and helps them have more effective protection conversations with their customers.
“Closing the protection gap will require action across the market, and advisers have a central role to play. More frequent and meaningful protection conversations can help more consumers understand their options and make informed decisions, leading to better outcomes for them and their families.
“Member engagement will be central to that process. We want firms and advisers from across the market to share their experiences, contribute their ideas and help us develop an approach that delivers lasting improvements for consumers.”
