AMI release latest protection industry report
Earlier this month, AMI released their latest report that opens up some really intriguing protection-based conversations. The report delves into several recent surveys of consumers and advisers alike that have provided some surprising (and some unsurprising) statistics. Chair of AMI, Andrew Montlake, said that this report “represents a continuing journey to help understand and improve the industry not just for those within it, but more importantly for the thousands of people that choose to work with intermediaries and expect to receive the very standards of advice”.
Some of the most important take-aways from the report is the sheer level of people who are unaware of the facts when it comes to protection. A third (34%) of consumers that took part in a survey incorrectly believed that income protection insurance was not an option for people who are self-employed, while 35% were also under the impression that a pre-existing medical condition would be enough to make them ineligible.
There are a variety of specialist providers available that can help with almost any situation or circumstance – so it’s important to never feel like protection insurance wouldn’t be available to you.
Shockingly, the report found that 33% of consumers claimed that they did not even discuss income protection with their mortgage adviser. Income protection is such an important topic to cover and can be a lifesaver for anyone if the worst were to happen. If you haven't discussed it with your adviser, perhaps it’s a good idea to bring up the topic of protection yourself – you never know when you may need it and it could save you huge amounts.
There was, however, a more promising statistic to come out of the latest report. Nearly two thirds (64%) of the mortgage advisers involved with the survey said that there had been a noticeable increase in their protection business since the pandemic first began.
This shows that the COVID-19 pandemic has potentially served as quite the eye-opener for lots of households as more and more decide to take out protection insurance having seen the effects at their worst over the last two years. Perhaps the common opinion of ‘it would never happen to me’ has been somewhat debunked in recent times.
Finally, the simple things should never be overlooked. According to the report made by AMI, 25% of people who took part in the survey had not even been in contact with their adviser over the last five years. Lives can change dramatically in that period and if you do find that you may be in the position of wanting some cover – there’s never a bad time to get in touch.
Protection insurance is often overlooked but it can prove to be vital in so many scenarios. With a pandemic being just one example, no one can ever be sure what could be around the corner - so making sure you and your family are protected can be a great way to put your mind at ease.
If you’d like to discuss the options available to you, contact one of our adviser's today.