Two in five (40 per cent) advisers say their firm has seen an increase in protection conversations with clients as a result of consumer duty, the Association of Mortgage Intermediaries has revealed.
Ahead of its fourth annual AMI Protection Viewpoint Report on protection within the mortgage industry, the association revealed that, for a “significant” number of advisers, consumer duty has acted as a catalyst to broaden the protection conversation.
A third (33 per cent) of advisers have noticed changes to how they are required to evidence customer protection conversations on file and 24 per cent say they are now talking to customers about a different variety of protection products.
However, this was not the same across the board, as 22 per cent of advisers have not seen any protection related changes made by their firm.
Royal London customer life stage director, Carrie Johnson, commented: “It’s really encouraging to see evidence that the consumer duty is already making a positive change, increasing the number of protection conversations being irritated.
“This is a great outcome as we know the importance of having protection at the heart of the advice conversation, particularly when thinking about mortgages.”
She explained that considering the range of products available will make a real difference to the financial health of clients throughout their lives.
“And, although more challenging when finances are stretched, it has never been more important to ensure clients can withstand life shocks at any stage in their lives,” she added.
AMI senior policy adviser, Stacy Penn, said: “It’s encouraging to see many mortgage intermediary firms embrace consumer duty and hopefully customers are beginning to see the benefits of having better conversations around protection.”
It was also revealed that some advisers are missing out on opportunities as more than a quarter (28 per cent) of consumers who could not recall a protection conversation with their mortgage adviser said they would have been interested in having one.
Full findings from the research will be released November 8 at the virtual event of AMI’s 2023 Protection Viewpoint report in partnership with Legal & General and Royal London.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
