Consumers have become more open to answering personal questions about their health and lifestyle, according to new data from the MorganAsh Resilience System (MARS).

Across the tool’s users, MARS has reported positive response rates to vulnerability questionnaires, introduced by firms as part of Consumer Duty preparations.

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

While some firms are identifying vulnerability in single figures, MorganAsh also highlighted that MARS users are reporting the proportion of vulnerable customers between 40 to 70%, a level in line with the findings of the Financial Lives survey by the Financial Conduct Authority (FCA). This figure varies by age and demographic between each firm.

The MorganAsh data comes as firms continue their preparations for the July deadline to understand and assess the vulnerability of all customers. As part of Consumer Duty, the FCA will expect firms to evidence the vulnerability of their customers and monitor this throughout the lifetime of a product.

Managing director of MorganAsh, Andrew Gething, said that industry fears of consumers not answering health and lifestyle questions are “unfounded” and actually part of a wider value exchange.

“Many in financial services have reservations about consumers answering questions on health and lifestyle – or that they find them too intrusive,” Gething commented.

“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.

“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.”

MorganAsh launched its MARS broker tool in March last year to help firms understand and monitor vulnerable customers and deliver good outcomes – in line with the requirements of Consumer Duty.

“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,” Gething added.

“While a step-change is required to collate, retain and monitor the evidence of vulnerability from clients, the encouraging news is consumers are more willing to co-operate than many might think.”

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