Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Protection Conversations Increase, But Cost and Positioning Remain Barriers

A recent poll by Mortgage Solutions has found that more brokers are having conversations with clients about protection, but advisers say that cost and the way advice is delivered continue to limit uptake. Over two-thirds of poll respondents reported an increase in protection discussions, a trend also reflected in a MetLife UK study.

Tom Davies, group financial services managing director at Mortgage Scout, noted that these conversations are not new, but the poll results reflect ongoing changes in the market. The Financial Conduct Authority’s Pure Protection Market Study has highlighted the importance of considering protection early and as part of a broader review of a client’s financial position, rather than as an afterthought.

The regulator has ruled out major intervention for now but indicated it may address the protection gap in the future. Scott Taylor-Barr, principal adviser at Barnsdale Financial Management, said that protection has always been a core part of his firm’s advice process, with multiple touchpoints to help clients understand the value of cover.

Neil Mulhearn, head of sales at Echo Finance, reported a significant increase in protection conversations among brokers, leading to more protection sales. Echo Finance has responded by recruiting a dedicated team to handle protection leads, with recent hires to support growing demand.

The MetLife UK study also found that some clients who intended to take out a policy did not follow through. Advisers agreed that how protection is positioned and advised on has a significant impact on client decisions. Ahmed Bawa, CEO of Rosemount Financial Solutions, said his firm has invested in training advisers to better communicate the value of protection and to sell it effectively.

For UK letting agents and inventory clerks, these findings highlight the ongoing challenges in ensuring clients are adequately protected, particularly as cost and the delivery of advice remain key barriers to uptake.