The Association of Mortgage Intermediaries (AMI), in partnership with Royal London and Legal & General, has published its latest Protection Viewpoint Report.
Titled Making Protection Personal, the report offers key insights on consumer expectations and provides actionable guidance for advisers aiming to enhance their customer relationships in the evolving protection market.
Consumer expectations
Today’s customers expect speed and simplicity. Over a quarter (28%) believe that protection policies should be in place within 48 hours, and 25% expect it within a week.
Younger customers, especially Gen Z, tend to have more realistic expectations, yet the demand for efficient processing remains a common theme.
Brokers should consider aligning with providers known for efficient processing and set clear timelines to manage expectations.
Adviser feedback on insurers
AMI’s findings reveal mixed feedback from advisers on insurer service levels, particularly regarding underwriting and claims. While some report improvements, others see a decline, especially in claims handling. This suggests that choosing insurers carefully and being transparent about any delays with clients could strengthen trust.
Focus on customer retention
Encouragingly, 65% of advisers now proactively work to keep customers’ policies in force, up from 60% in 2023.
Regular reviews have proven effective, with nearly half of advisers reporting improved retention. For brokers, regular check-ins offer an opportunity to reinforce the relevance of customers’ coverage.
Annual statements as engagement tools
Annual statements remain a useful prompt for policy reviews, though only 16% of recipients actually review their cover upon receiving one. Brokers might consider leveraging annual statements to encourage customers to reassess their protection needs.
AMI’s four-point action plan for brokers
To better engage customers, AMI suggests:
- Building a human connection by understanding each customer’s personal situation.
- Simplifying products by avoiding jargon.
- Empowering customers to take control, encouraging research and questions.
- Emphasising the benefits of protection, and reassuring customers of the product’s value.
Stonebridge’s perspective
Stonebridge’s Head of Sales, John Scrivens, noted, “It’s heartening to see younger generations prioritising protection, with 65% of Gen Z and 70% of Millennials recognising the value of income protection.” He added that Stonebridge remains committed to supporting advisers in having empathetic, meaningful protection conversations across all age groups.
For brokers, the insights from AMI’s Protection Viewpoint 2024 offer a framework to engage with customers more effectively, meeting their evolving needs and enhancing their protection experience.
Read the full report here and watch the recording of the report launch session here.
