10 PROTECTION TOMORROW
An overview of recent research findings commissioned by the Association of Mortgage Intermediaries
In the second half of 2020 , the Association of Mortgage Intermediaries undertook research into the protection market pulling together data provided by both advisers and consumers , to offer an overall review of the market , highlighting where change might take place in order to ensure that consumers are able to adequately protect themselves .
Having assessed the responses at length , the output is available as a report ‘ New Protection Challenge ’, and clearly demonstrates a significant difference in perception on the part of both parties . In this article we bring you the headlines but would encourage you to access the full report and its wider findings which is now available on the AMI website .
The initial question posed by AMI Chief Executive , Robert Sinclair was : ‘ Why don ’ t more consumers buy life , critical illness or income protection cover ?’
The initial obvious conclusion is that there is large double hurdle in the way as it seems that not only do we have a protection gap , we also have a very large perception gap . What advisers reported as taking place is seen quite differently from the reported experience of the consumers . With such a divergence in understanding , how are we as an industry going to get the consumer onside in respect of protection uptake ? Myths abound about claims rates , making suggestions that it ’ s a one-sided sector that doesn ’ t pay out , and frankly this isn ’ t helping anyone . For the first time in many years , the pandemic has momentarily perhaps , had clients appreciating their ‘ new-found ’ mortality – but what do they do then , when they are led to believe that they can ’ t trust in a policy in the first place ?
Common sense says it needs to be a collective effort between all three parties , the providers and the advising community need to educate , develop trust and strength in relationships and consumers need to listen to the important messages being offered