Consumers are more open to answering personal questions about their health and lifestyle than is generally believed, new data from the MorganAsh Resilience System (MARS) reveals.

Financial services support specialist MorganAsh reports positive response rates to vulnerability questionnaires, introduced by firms as part of consumer duty preparations.

While the response rates vary based on the existing engagement with the consumer, it ranges from 60% when questionnaires are sent out cold, and up to 100% when advisers explain to current customers.

While some firms are identifying vulnerability in single figures, users of MARS are reporting the proportion of vulnerable customers between 40-70%- in line with the findings of the FCA’s Financial Lives survey. This figure varies by age and demographic between each firm.

The data comes as firms edge closer to the July deadline to understand and assess the vulnerability of all customers. As part of Consumer Duty, firms must evidence the vulnerability of their customers and monitor this throughout the lifetime of the product.

Andrew Gething, managing director of MorganAsh, argues that the industry’s fears of consumers not answering health and lifestyle questions are unfounded and actually part of a wider value exchange.

Gething says: “Many in financial services have reservations about consumers answering questions on health and lifestyle – or that they find them too intrusive. The latest real-world data from MARS shows the opposite – that this fear is unfounded. The majority of consumers are open to answering such questions in the pursuit of a better, more tailored service – providing information that is absolutely vital to understand consumers’ characteristics.

He adds: “There is also a perception that consumers will bias their answers depending on the transaction. For example, when people are applying for credit, advisers will say clients will not disclose any vulnerabilities for fear of not getting the loan. In practice, this is also far less of an issue than the industry fears. The vast majority provides accurate data.

“This good-quality data not only allows firms to deliver better services, but also to meet the requirements of Consumer Duty – a clear priority with July looming”.