The Exeter has calls for industry action as findings from its research with the Association of Mortgage Intermediaries (AMI) reveals the ‘perception gap’ is widening, driven by low consumer understanding of protection products and fragile consumer savings.
The Exeter is encouraging the industry to continue the momentum built in 2025.
It calls for protection conversations to be made simpler, more consistent and easier to remember and to communicate how income protection supports everyday financial stability, not just worst-case scenarios.
It also urges the industry to address misconceptions as early as possible in the advice conversations and strengthen ongoing customer touchpoints to reinforce the value of existing cover.
The comes after The Exeter’s recent consumer research shows one in four (24%) consumers have less than £500 available to cover essential expenses and nearly one in seven (14%) have no savings at all.
However, according to the sixth AMI Viewpoint, only 39% of mortgage holders recall having a protection conversation with their adviser.
This is despite 82% of advisers reporting they give protection advice directly. This points to a challenge around consumer recall and understanding, rather than adviser intent or effort.
This disconnect is further reflected in only 35% of consumers being able to correctly identify income protection products when provided with a description by AMI, signalling a lack of understanding of one of the industry’s most important products.
Simultaneously, 18% of consumers drop out of the protection buying journey, rising to 25% among under-35s.
It’s positive that 82% of advisers discuss protection directly with clients and the industry is making real progress in normalising these conversations.
However, there remains an opportunity to improve on the lack of consumer understanding and ensure that these conversations are clearer and easier to act on.
The Exeter director of distribution and marketing Steve Bryan says: “Advisers are clearly committed to protecting their clients, and the latest AMI Viewpoint shows just how much good work is already happening. What the findings highlight is an opportunity for all of us to continue improving how we support consumers in understanding their options.
Our aim is to make the protection journey as seamless as possible. We’re encouraging advisers to make full use of the expertise, tools and resources available across the industry, all of which are designed to help simplify conversations, strengthen client understanding and make their day-to-day work easier.”
