Two in five (40%) advisers would say their firm has seen an increase in protection conversations with customers as a result of the Financial Conduct Authority’s (FCA’s) Consumer Duty.

This is according to research by the Association of Mortgage Intermediaries (AMI), ahead of its fourth annual AMI Protection Viewpoint report on protection within the mortgage industry.

For a significant number of advisers, the AMI suggested that Consumer Duty has acted as a “catalyst” to broaden the protection conversation. A third (33%) of advisers have noticed changes have been made to how they are required to evidence customer protection conversations on file and around a quarter (24%) said they are now talking to customers about a different variety of protection products.

However, this is not the case across the board. The AMI findings revealed that a little over one in five (22%) of advisers have not seen any protection related changes made by their firm.

The survey, which was carried out by Opinium among 3,000 UK adults and 463 advisers in August, also suggested that advisers are missing out on opportunities, as more than a quarter (28%) of consumers that could not recall a protection conversation with their mortgage adviser said they would have been interested in having one.

“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,” said senior policy adviser at the AMI, Stacy Penn.

“The AMI Viewpoint event will provide thought leadership on what we believe are the key issues and opportunities in the market, brought to life through the lens of consumers and advisers. We’ll take a closer look at current hot topics facing the industry, such as the value of advice, consumer buying habits and generational opinions and attitudes.

“This year’s title The Perception Gap is a deliberate play on words. It reflects how over the years we’ve talked a lot about the protection gap – and not got very far in reducing it. We feel it’s time for a re-think as understanding perceptions, and more importantly tackling misperceptions, is the key to protecting more people.”

The AMI confirmed that its findings from the 2023 consumer and adviser research will be revealed on Wednesday 8 November at the virtual event of its 2023 Protection Viewpoint report, The Perception Gap, in partnership with Royal London and Legal & General.

Director of intermediary at Legal & General, Julie Godley, added: “This report is a timely reminder of the vital role that advisers play in educating and empowering consumers to protect their financial future. The perception gap is a challenge that we all need to address as an industry, and we’re proud to support AMI’s efforts to raise awareness with relevant insights and sharing firm case studies.”

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